Nitin Gadkari: 6 lakh MSMEs restructured, coronavirus offers opportunity to Indian industries

The government has said that six lakh industries under MSME have been restructured and urged the sector to look at opportunities for expansion following the global impact of coronavirus.

   
Coronavirus sanitizer industry

As per news reports, the government has said that six lakh industries under MSME have been restructured and urged the sector to look at opportunities for expansion following the global impact of coronavirus. The MSME minister Nitin Gadkari has reportedly quoted that six lakh industries under MSME have already been restructured and by December 31, the extended date for restructuring, the numbers will increase. In fact, Nitin Gadkari said that because of coronavirus lot of opportunities are with the Indian industries.

On the exports side and employment concerned, the minister said that they were growing, but underlined the need for timely payment to industries by central and state government undertakings. Nitin Gadkari quoted, “the major problem is state government and central undertakings… they don’t give money of small MSME,” he said and added that if one company is impacted thousands are rendered jobless. There is no provision to protect the interests of industries under MSME in NCLAT Act, he said.

The minister also stated that his department was contemplating acting against the heads of such central or state undertakings which do not make payments within three months and the steps included 12 per cent interest on the amount.

The minister also noted that the earlier date of restructuring which was March 31 has been extended to December 31 and exuded confidence that a large number of industries will benefit from the move. The minister quoted, “we have restructured 1.5 lakh accounts,” the minister said, adding massive steps were on so that no account should turn NPA.

Stressing that the government is extending full support to MSMEs, the minister said that the recommendations of UK Sinha Committee have been accepted and “during January 2019 to January 2020, over six lakh accounts have been restructured under the circular covering loans of Rs 25,000 crore.”

Meanwhile, besides one of the recommendations of Sinha committee pertaining to “fund of funds” to provide debt and equity support is being finalized. The minister added, “Finance Secretary has approved it and it will go to the Cabinet.”

In addition to this he also stated that distressed asset fund is being created, and he also mentioned that demonetisation has had no impact on the sector. Rather this along with GST has ushered in economic reforms.