Rs 1-lakh cr fund in the works to repay pending dues to MSMEs: Gadkari


PTI, Apr 24, 2020, 5:23 PM IST

New Delhi: The government will set up a Rs 1-lakh crore fund to repay outstanding payments to MSMEs owed by the central and state government undertakings as well as major industries, Union Minister Nitin Gadkari said on Friday.

The minister said he has devised a scheme to set up the fund, and the proposal may be placed before the Cabinet for approval once the finance ministry gives its go-ahead.

“We have decided to set up a fund of Rs 1 lakh crore. We will insure this fund with the government paying the premium. We will come up with a formula for sharing of the interest burden between the paying entity and payment-receiving entity and banks against this fund, for the payments due to MSMEs which are stuck with the PSUs, centre and state governments and major industries,” Gadkari said.

The Minister for MSME and Road Transport and Highways said the fund will impart relief to the micro, small and medium enterprises (MSMEs) sector to a certain extent.

He said the corpus will be a mobile fund that will help increase liquidity in the market.

Interacting with representatives of Assocham via video-conferencing, the minister asked the industry chamber to explore a technical joint venture through the investment of capital between Indian industry and major global corporations.

Gadkari also suggested the industry body to compile investment data regarding companies from the US, the UK and other nations present in China and invite them to set up businesses in India.

The minister said he is willing to monitor this initiative to expedite all the required permissions in this regard.

Besides, Gadkari said he would take up the issue of expediting GST and income tax refunds with Finance Minister Nirmala Sitharaman to ease MSMEs’ liquidity issue.

“I am also going to recommend to the finance minister that since computerised systems are in place for GST and income tax refunds, why can’t we expedite the system and process refunds within 8 days,” he said.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Gangster Chhota Rajan sentenced to life imprisonment for murder of Mumbai hotelier Jaya Shetty

God and meditation PM’s private affair, why should we interfere; asks D K Shivakumar

Udupi: BJP expels four office bearers for anti-party activities

Illegal money transfer case Minister B Nagendra will be summoned, says Shivakumar

Twenty one killed, 47 injured as bus falls into gorge in Jammu

IndiGo derosters 6 crew members in connection with Delhi-Varanasi flight bomb scare incident

Delhi CM Kejriwal faces health crisis amid ED custody

Related Articles More

RBI sees real GDP growth at 7 pc in FY25

IRDAI directs health insurers to decide on cashless authorisation in 1 hour

Cost of living doesn’t influence salaries; Pune among safest cities for talent: KPMG Survey

Paytm shares jump 5 pc; hit upper circuit limit

Govt puts on hold new wastage norms for gold, silver jewellery exports till July 31

MUST WATCH

Shivamogga

Les Saveurs institute and cafe

Peacock rescued from well

Popular Guruprasad Restaurant

Haralukote Shri Anjaneya Swamy |Udayavani


Latest Additions

Gangster Chhota Rajan sentenced to life imprisonment for murder of Mumbai hotelier Jaya Shetty

Akhilesh Yadav mocks Modi’s meditation trip amid poll campaign

God and meditation PM’s private affair, why should we interfere; asks D K Shivakumar

Vice President Dhankhar visits Neem Karoli Baba Ashram

Udupi: BJP expels four office bearers for anti-party activities

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.