Centre working on scheme to reimburse pending dues to MSMEs with interest: Nitin Gadkari
The Centre is working on a scheme to reimburse pending payments with interest to micro, small and medium enterprises (MSMEs), Union Minister Nitin Gadkari said on Thursday
New Delhi: The Centre is working on a scheme to reimburse pending payments with interest to micro, small and medium enterprises (MSMEs), Union Minister Nitin Gadkari said on Thursday.
Once implemented, the government's plans towards framing a mechanism for clearance of huge pending dues owed to MSMEs by central and state PSUs as well as corporate players are expected to provide a major relief to the sector battling distress, as millions of units struggle to survive amid mounting losses caused by the coronavirus pandemic.
In an interaction via video conferencing with the representatives of Bharat Chamber of Commerce, the minister for MSME and transport said the default on pending payments is one of the "big problems" faced by MSMEs.
Gadkari said he has asked the MSME ministry officials to work on formulating a scheme of Rs 1 to 2 lakh crore.
"Where there is a pending bill we can reimburse that amount with the interest cost. We will find out some solution, some of the cost will be borne by the government, some of the cost will be borne by the industry, some of the cost will be borne by the supplier and we will take the guarantee for that and MSMEs will get their payment. We are working on it. So that can be a good relief to MSMEs," said the minister.
During the interaction, Gadkari said while the government has allowed certain industry sectors to start functioning, it is also needed to be ensured that necessary preventive measures are taken to prevent the spread of COVID-19 .
He emphasised on the usage of masks, sanitisers, gloves, etc and advised maintaining a safe social distancing while resuming the offices/business operations.
Industries should also arrange shelter and food for the labourers at the work site and focus on preventive measures and business activities simultaneously.
The minister further mentioned that highways and ports have started functioning and over a period of time, operations will be on track.
Regarding the MSME sector's revival, the minister said that special focus towards export enhancement is the need of the hour and necessary practices shall be adopted to reduce costs for power, logistics and production to become competitive in the global market.
Gadkari stressed that there is also a need to focus on import substitution to replace foreign imports with domestic production.
He urged enterprises to make use of technology and mentioned that research, innovation and quality improvement can play a major role in industrial development.
The minister also stated that Japan has offered a special package to their industry for taking out their investments from China and move elsewhere.
He sees it as an opportunity to be grabbed by India.
Stating that work on Delhi–Mumbai Expressway has already started, the minister said this is an opportunity for the industry to make future investments in industrial clusters, industrial parks, smart villages and smart cities with focus on decentralisation approach in rural and tribal areas and urged that such proposals be submitted to the National Highways Authority of India.
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