Industries want proper implementation of measures
The government is exploring new financial lending institutions to support small-scale units in terms of financial support while restructuring of 6 lakh MSMEs till March 2020 have been done and additional 25 lakh units will be covered by December 2020.
The government is also strengthening NBFCs which will help small businesses to avail easy credit in the coming time, said MSME Minister Nitin Gadkari in an update on rebuilding weaker industries.
“These are trying times as we are waging a war against COVID-19 pandemic as well as the economic instability caused by it,” he told, via video conferencing, members of Calcutta Chamber of Commerce on impact of COVID-19 on MSMEs and the measures taken to address the challenges at hand.
Gadkari explained various support measures which has been announced for MSMEs such as collateral free automatic loan and distress fund among others.
These measures will provide the required support to MSMEs to face the current economic challenges, he added through the conference held 25 May 2020.
Six lakh MSMEs have been restructured till March 2020 and the Ministry is aiming to cover additional 25 lakh until December 2020, he informed.
He noted that special focus on export enhancement is the need of the hour but there is need to reduce production and logistics costs to become economically viable.
He also took noted of questions and suggestions from conference participants. These included to safeguard MSMEs from becoming an NPA and how banks can be incentivized for proper implementation of proposed measure offered by the government.
MSME current export accounts for 48% of the economy while the government aims to boost it to 60%. fiinews.com
