For Quick Alerts
For Daily Alerts

Dues Of MSMEs Will Be Released At The Earliest: Nitin Gadkari


Nitin Gadkari, Minister of Road Transport and Highways and MSMEs, said that Indian industry including MSMEs should convert this crisis into an opportunity, accelerate infrastructure projects and win this war against Corona to achieve economic growth.

Addressing FICCI's National Executive Committee Meeting via video conferencing, Mr Gadkari said, "Given the current dismal standing of China in the global market, the Indian industry including MSMEs should look at the current situation as a blessing in disguise." He added that this is the time when India can capture export market as countries like Japan and USA are withdrawing from China.

Dues Of MSMEs Will Be Released At The Earliest: Nitin Gadkari

Mr Gadkari suggested that exports from India can be increased by reducing cost of power, capital and logistics. "Utilize water ways for exports for reducing transport cost," he said.

Talking of MSMEs Mr Gadkari said that in this economic crisis that has arisen due to COVID 19 pandemic, it is important to protect MSMEs which contributes 29% in India's economy. The Minister indicated that a decision has been taken to increase the limits for defining of MSMEs which will further increase the coverage of MSMEs. "An announcement in this regard will be made in next few days," he said.

He mentioned about enhancing the purchasing power of the individuals and increasing the liquidity in the market. Mr Gadkari stated that dues of MSMEs at central and state level will be released at the earliest and urged the private sector to clear the dues of MSMEs. He estimated that Rs 40,000-50,000 crore could be injected in the market by releasing the due payments.

On one of suggestions from FICCI, Mr Gadkari said that credit against pending payment on the basis of 3 years' GST and bank record may be considered. He also appreciated FICCI's suggestion to use ESI fund to pay the labourers from un-organised sectors on a temporary basis and agreed to consider it.

In response to a FICCI suggestion of collateral and interest free loan to MSMEs, Mr Gadkari said that Ministry of MSME has already taken 75% guarantee to loans by banks to MSEs worth Rs 1 lakh crore by paying 1.5% premium and banks only have to take 25% collateral. However, the Ministry is putting efforts to further reduce this from 25%.


He stated that Ministry is aiming to increase the purview from Rs 1 lakh crore to Rs 5 lakh crore, in consultation with Finance Ministry. With respect to interest free loans, he assured to discuss it with Finance Ministry. However, he added that the industry cannot overcome this crisis if banks and government collapse, hence the need of the hour is to take care of each other.

Read more about: msmes nitin gadkari
Story first published: Wednesday, April 15, 2020, 8:07 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more