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.