Special Scheme of 1 to 2 Lakh Crore to Ensure Reimbursement of Pending Payments with Interest to MSMEs: NItin Gadkari

Since the lockdown is now becoming a tough situation for most of the SMEs, Union Minister of Micro Small and Medium Enterprises (MSMEs) Nitin Gadkari once again came out and interacted with industry representatives through video conferencing. In his address, Mr. Gadkari has said that his ministry along with various concerned ministries are working on a scheme to reimburse pending payments with interest to SMEs.

''The default on pending payments is one of the big problems faced by MSMEs,'' said Gadkari in an interaction via video conferencing with the representatives of Bharat Chamber of Commerce (BCC). Well, this statement came out as a relief for SMEs who are finding it difficult to even visualise how to restart their business after the COVID crisis.

''I have asked the MSME Ministry officials to work on formulating a scheme of Rs 1 to 2 lakh crore,'' he added.

The Minster further said that if there is a pending bill anywhere, 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 also said that the Centre is exploring the possibility of allowing industry to use the Employees’ State Insurance (ESI) scheme funds for payment of wages.

A decision in this regard will be taken at the Prime Minister and Finance Ministry level,” Gadkari said.