Nagpur: Union Minister Nitin Gadkari on Tuesday asked India Inc to clear huge outstanding payments to micro, small and medium enterprises at the earliest in order to ease the distress in the sector and inject liquidity into market. In a discussion with senior industry members of Ficci via video conferencing, the MSME minister exhorted the industry to clear pending dues owed by them to the units. “We were earlier considering framing a law entailing stringent rules regarding such payments. However, now is not the right time for this. We do not wish to go down that road,” the minister said.
The government’s endeavour was to protect MSMEs, which contribute 29 per cent to the country’s GDP (gross domestic product), from coronavirus-induced crisis. “We have decided to raise (turnover) limits for MSMEs. An order to this effect should hopefully be out in 8-10 days, which will naturally enhance their coverage,” Gadkari said.
The Union Cabinet had in 2018 approved changes in the basis of classifying micro, small and medium enterprises from ‘investment in plant & machinery/equipment’ to ‘annual turnover’.