STOCK MARKET BSE NSE

MSMEs battling for survival due to coronavirus: Union minister Nitin Gadkari

Various research papers have shown that Covid-19 has stalled business activities of MSMEs, leaving them with no working capital.

Published: 08th May 2020 01:38 AM  |   Last Updated: 08th May 2020 11:56 AM   |  A+A-

Union Transport Minister Nitin Gadkari

Union Minister Nitin Gadkari (Photo | PTI)

By Express News Service

NEW DELHI: India’s MSME sector is gasping for life and may not survive the impact of the coronavirus pandemic unless it gets emergency funding, Union minister Nitin Gadkari said on Thursday.

Speaking to automobile lobby group SIAM through video conference, he urged major industries to clear their pending payments to small businesses within a month.

He conceded that the Centre, state governments and public sector undertakings also owe large sums to MSMEs, but added a financial package for the sector is in the works.

“We are trying our level best to get a good package to MSMEs where the problem is serious. I expect it to be declared by the government as early as possible,” he said.

The minister had recently said the government would set up a Rs 1 lakh crore fund to clear outstanding payments to MSMEs. He added there is a plan to restructure 25 lakh MSME loan accounts by December this year, up from 6 lakh till March 31.

According to estimates, there are 6.34 crore MSMEs employing over 11 crore people. Micro enterprises, whose annual turnover is less than Rs 5 crore, account for over 99% of the total MSMEs in the country.

Various research papers have shown that Covid-19 has stalled business activities of MSMEs, leaving them with no working capital.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp