Coronavirus: Govt committed to support MSMEs in distress due to lockdown, says Nitin Gadkari

The Union Minister for MSMEs said that discussions are already underway for financing 10 percent of the working capital for MSMEs amid the coronavirus-led lockdown.

Union Minister Nitin Gadkari on Monday said the government is committed to supporting micro, small and medium enterprises (MSMEs), facing difficulties amid the coronavirus-led lockdown, and discussions are on towards financing 10 percent of their working capital and introduction of a deferred payment plan for units in distress.

"We will have to support industries facing difficulties, increase their working capital; we are already in talks for increasing it by 10 percent, along with this deferred payment," said the minister via video-conferencing.

He was addressing a conference on 'Post COVID Entrepreneurship Opportunities and Challenges'.

Gadkari said the government was focussed on how to save the sector and help those facing problems by increasing production, exports, and enhancing job creation.

"Our emphasis is towards job creation in rural, agricultural, and tribal, with a focus on the development of 115 aspirant districts across the country," said the Minister for MSME and Road Transport and Highways.

Gadkari expressed confidence of the khadi and village industries achieving a total turnover of Rs 5 lakh crore in two years, from Rs 75,000 crore last year, and Rs 1 lakh crore expected this year.

He said the MSMEs and textiles ministries are together devising a Solar Cluster Scheme for Handloom, whereby two solar charkhas each will be given to 10 lakh women, helping generate employment opportunities.

"We are bringing a Solar Cluster Scheme for Handloom. I have spoken to Smriti Irani and we are devising a scheme together under which two solar charkhas each will be given to 10 lakh women," Gadkari said.