Nitin Gadkari pitches for Rs 10,000 Cr fund to buy shares of listed MSMEs

Minister for Micro, Small and Medium Enterprises Nitin Gadkari says he has requested the Finance Ministry to sanction a Rs 10,000 crore fund for purchasing 10 percent equity in MSMEs listing their equity on stock exchanges.

Union Minister Nitin Gadkari on Wednesday said the MSME Ministry has sought a fund of Rs 10,000 crore to buy equity in small businesses wanting to list on the stock exchanges.

"We have requested the Finance Ministry to sanction us Rs 10,000 crore and whichever MSE (micro and small enterprises) wants to list their equity on the stock exchanges, we will buy 10 percent in them. I believe this 10 percent of our equity will increase by two to three times in three to four years. So, this will increase value of our capital so that we can keep rolling this fund as the government alone cannot do all the things in this age and time," said the Minister for Micro, Small and Medium Enterprises (MSME) at the 'India MSE Awards 2019'.

Gadkari, who is also the Union Minister for Road Transport and Highways, said he wanted to increase the revenue of the ministry to Rs 1 lakh crore in next five years without seeking any help from the government by monetising road assets.

He said roadside amenities such as providing space for charging stations or petrol pumps and charging commission from companies, could be tapped to increase the revenue of the ministry. The minister also said there was huge potential for small units and businesses in India for export competitiveness.

He said plans were afoot to create as many as 13 clusters at village level to set-up solar powered weaving units.

"To reach the $5 trillion economy goal, MSME, khadi, handloom, and handicraft industries will play a critical role. Government policies are mostly urban-centric and it takes time to reach problems of the rural areas to Delhi or Mumbai. The agricultural, rural and tribal sectors are trailing behind and if people belonging to these places migrate to cities then problem will rise. So, we have to keep a balance and have to increase urban employment potential also," he said.

(Edited by Teja Lele Desai)