MSME sector on verge of collapse: Gadkari


New Delhi: Union Minister Nitin Gadkari on Thursday stated micro, small and medium enterprises (MSME) sector is on the verge of collapse and urged main industries to launch the excellent dues to such corporations inside a month. He stated the place of MSMEs was “worst” as they had been now engaged in a “battle for their survival”.
The minister additionally famous that the pendency of dues owed to MSME items by the central government, state governments, public sector undertakings and main industries was “very high”.

“My request to all of you, as members of major industries, if it is possible for you to at any cost release the payment within a month. Don’t take more time than that otherwise the situation is very bad,” the MSME minister stated in an interplay by way of video-conference with the members of SIAM Institute.

“But still if anywhere you have a problem, please be positive about this sector, because this is really on the verge of collapse. Now it is a very important thing if you can help them, within a month if you can give their payment it will be good,” Gadkari stated.

The minister stated he was attempting to introduce a scheme envisaging establishing of a “rolling fund” the place the curiosity price on the payments as a consequence of MSMEs shall be borne both by the provider or the buying business.

Gadkari stated the “rolling fund will be helpful for MSMEs to get their working capital”.

Last month, the minister had stated the federal government will arrange a Rs 1 lakh crore fund to repay excellent funds to MSMEs owed by the central and state authorities undertakings in addition to main industries.

Gadkari had stated he has devised a scheme to arrange the fund, and the proposal could also be positioned earlier than the Cabinet for approval as soon as the finance ministry offers its go-ahead.

“We have decided to set up a fund of Rs 1 lakh crore. We will insure this fund with the government paying the premium. We will come up with a formula for sharing of the interest burden between the paying entity and payment-receiving entity and banks against this fund, for the payments due to MSMEs which are stuck with the PSUs, centre and state governments and major industries,” Gadkari had stated.

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