MSME package in the pipeline: Gadkari
The Union Minister of Road Transport & Highways, Micro, Small & Medium Enterprises, Shri Nitin Gadkar stated that an extended lockdown was vital to rein in the Covid-19 outbreak. He assured the country that the government is trying to restore normalcy within the constraints, while hoping that hope that with economic activity resuming, workers will stay put and not go back to their villages.
The minister added that he has suggested providing low-cost capital to MSMEs through NBFCs and called for speedy payment of their outstanding dues. The proposal has already been shared with the Finance Ministry for consideration. “We had already started the process of restructuring loans of MSMEs and till March 31, nearly 6 lakh MSME loans have been restructured. Their loan repayments have been deferred and working capital limit has been raised by 20%,” he said.
He added that the fact that the world is keen to diversify supply chain and move out of China presents a golden opportunity for the country to emerge as a leading player in the global value chain. To that effect, the government is working to ensure how it can reduce capital, land acquisition, power and labour costs to increase exports.