Parul
According to news reports, union minister Nitin Gadkari has asked the industry to release payments due to micro, small and medium enterprises (MSMEs) in the country. Gadkari told the senior members of FICCI via video conferencing. The minister quoted, “this will help bring liquidity and the MSMEs should be protected through this economic crisis.”
In fact, Nitin Gadkari who is also the minister for road transport and highways said that the national highways authority of India is also working on fast-tracking arbitration cases, which is likely to help inject liquidity into the market. The minister quoted, “the ministry has a definitive plan to clear all legitimate claims within three months.” He added, that by increasing the scale of infrastructure projects by at least two to three times will help drive economic activity in the country
The MSME minister further added that the MSME ministry is working to increase credit guarantees to the sector to Rs 5 lakh crore from the present level of about Rs 1 lakh crore wherein 75 per cent of the advances granted by financial institutions are covered by the government’s Credit Guarantee Scheme.
