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Govt to redefine MSMEs, will set aside Rs 10,000 crore: Nitin Gadkari

"We are modifying the definition of MSMEs and will decide within five days. We are also setting up a fund worth Rs 10,000 crores," Gadkari said.

By: Express News Service | Nagpur |
Updated: April 18, 2020 12:11:36 am
coronavirus outbreak, india lockdown, Maharashtra lockdown extension, Maharashtra news, indian express news Gadkari asked the MSMEs to focus on the manufacture of import-substituting products.

UNION Minister for Road Transport and Medium and Small Medium Industries (MSMEs) Nitin Gadkari said on Friday that the government is set to redefine MSMEs and is setting aside a fund of Rs 10,000 crore for MSMEs to help them overcome the problems they are facing in the wake of the COVID-19 lockdown.

Gadkari made these announcements in a video conference with representatives of MSMEs, which he addressed from Nagpur.

“We are modifying the definition of MSMEs and will come out with it within five days. We are also setting up a fund worth Rs 10,000 crore. What we will be doing is give credit ratings to good MSMEs… those which do exports, whose turnover is good, and which are paying GST. This has been approved by the Finance Ministry and is up for Union cabinet clearance, which will come soon,” Gadkari said.

He explained, “The government will give a share of Rs 15 crore to the MSMEs with good credit ratings that want to raise Rs 50 crore from equity market. After a few years, when the company’s shares go up in terms of monetary value, the government will sell its shares. We will later buy the shares again and will try to take MSMEs to the capital market.”

The minister further said, “The Reserve Bank of India, Finance Ministry and MSME Ministry have already taken several decisions. Banks have increased your working capital. We have already deferred your tax and installment payments. We have already restructured these deferred payments and have increased the deadline from March 31 to December 31 for six lakh MSMEs. We will eventually do that for 15 lakh MSMEs.”

Gadkari called upon MSMEs to try to understand the government’s position. “The government is with you. Some people say the government should waive off the interest. Banks also need to survive and the government also needs revenue to function… I know you understand these things well and know what to demand and what not to demand,” he said, calling upon MSMEs to focus on manufacture of import-substituting products.

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