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Former finance minister P Chidambaram on Friday mocked successor Nirmala Sitharaman and his ministerial colleague Nitin Gadkari for the solutions they have proposed for the problems of micro, small and medium-sized enterprises (MSMEs).
“Minister Gadkari says that governments and UPMs owe Rs 5 lakh crore as unpaid quotas to MSMEs,” he tweeted.
Will the two ministers “settle their accounts” first and allow MSMEs to save themselves without government “help”?
– P. Chidambaram (@PChidambaram_IN) May 15, 2020
Gadkari, the Union minister for MSMEs and road and motorway transport, said that government agencies have not yet settled the fees to such companies for more than Rs 5 lakh crore.
Noting that the MSMEs sector is on the verge of collapse, Gadkari also urged major industries to release outstanding quotas to such companies within a month. “The position of MSMEs is worse since they are now engaged in a battle for their survival,” he added.
He also said that the slope of quotas owed to MSMEs by the Center, state governments, public sector companies and the main industries is very high.
Chidambaram said in another tweet: “Minister Sitharaman says she will offer a free collateral loan of Rs 3 lakh crore to MSMEs (totaling 45 lakhs).”
In the first tranche of a stimulus package on Wednesday, Sitharaman announced that Rs 3 lakh crore will be provided in automatic unsecured loans to companies, including MSMEs, to meet operating liabilities, buy raw materials and restart operations.
Chidambaram asked, “So who is the lender and who is the borrower? Will the two ministers “settle their accounts” first and allow MSMEs to save themselves without the “help” of the government? “
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