Expect new financial package in two-to-three days; situation 'very bad': Gadkari
Union Minister for MSMEs, Nitin Gadkari, said that the situation "was very bad" despite the three-month moratorium on loan repayments announced by the RBI.
Union Minister Nitin Gadkari on Monday said he expects the Centre to unveil a financial package in two-to-three days, observing that the situation "was very bad" despite the three-month moratorium on loan repayments announced by the RBI.
The Minister for MSME, and Road Transport and Highways said the government stands with the industry but it also needs to understand the government's limitations.
"We are trying our level best on how we can protect everybody," Gadkari said, adding that while Japan and the US governments have announced mega packages, their economies are bigger than India's.
As part of measures to alleviate hardships faced by people, the Reserve Bank, on March 27, announced a slew of steps, including a three-month moratorium on loan repayments.
Interacting with the industry of Telangana via video conference, the minister said he has also suggested the Finance Ministry to explore a mechanism through which income tax and GST refund payments can be immediately transferred to the bank account of the individual concerned.
Gadkari said he has shared recommendations arising out of his interactions related to micro, small and medium enterprises (MSMEs) and the industry with the Finance Minister and the Prime Minister.
The minister said "within 2-3 days somewhere" he was "expecting a package from the government". "We are waiting for that", he added.
Gadkari had earlier stated that the MSME sector in India was on the "verge of collapse", and had urged industries to release outstanding dues within a month. Last month, he said the government had set up a Rs 1 lakh crore fund to repay outstanding MSMEs owed by central and state government undertakings.
A report by TransUnion CIBIL and SIDBI showed that Non-Performing Assets in MSMEs continue to be lower than large corporates. Meanwhile, rating agency CARE warned that a majority of the MSMEs, which employ millions of workers, may have to shut shop unless immediate government support reaches them.
(Disclaimer: Additional information has been added to this PTI copy for context)
Edited by Kanishk Singh