[ad_1]
Updated: May 19, 2020 7:24:34 am
“The centre and core of the feed systems is to clear all the outstanding of MSMES dues within 45 days. I’ve also requested to other companies to clear pending dues of Msmes as all capital is the working capital for them. The working capital is like oxygen for them,” Nitin Gadkari said.
The admission of the issue of outstanding payments to Micro, Small and Medium Enterprises is a serious problem that was starving these units of vital importance, “oxygen”, the Union Minister of Road Transport and Highways, and Msmes Nitin Gadkari said that the execution of the settlement of the dues within 45 days of the is of strict compliance to ensure that these units remain solvent in the midst of the Covid security lock of the anguish.
Read| Explain: Why are Medium-sized, Small, Micro Enterprises are most affected by the Covid-19 lock?
Speaking at The Indian Express e-Adda event Monday, Gadkari said that while it will be difficult to get migrant workers, who have left, to return to the manufacturing centres, such as Gurugram and Pune in the short term, the need to create “confidence” in their minds” to come back was essential.
Recognizing that the vehicle scrapping policy that was piloted is hanging fire for almost two years, the european Union, the Minister said he was making a renewed impulse to the policy of providing a much-needed boost to the automobile sector. The move is expected to put a limit on the life of the vehicles in terms of years or kilometres run, and ensure that the older vehicles are regularly progressively.
“The centre and core of the feed systems is to clear all the outstanding of MSMES dues within 45 days. I’ve also requested to other companies to clear pending dues of Msmes as all capital is the working capital for them. The working capital is like oxygen for them,” Gadkari said.
The total of the outstanding payments to units in the MSME sector is pegged at more than rs 5 lakh crore, which is divided between the central ministries and departments, state governments and public sector units under the Centre and the states, as well as payments owed by downstream industries.
After blocking, the Msmes have been one of the most affected due to the lack of orders. While the the government has announced a series of measuresincluding unsecured auto loan worth rs 3 lakh crore, most of the MICRO businesses had tried to liquidation of quotas to help them overcome the crisis.
Read| Explained: Break the Center Atmanirbhar package
Industries, including in the auto ancillary sector, which are among one of the largest generators of employment, have been expressing concern about the possible shortage of workers when the lockout ends. Gadkari, however, warned against the acceptance of the idea that all of these units were only dependent on migrant workers.
“When the environment is conducive, I am sure that you will get back of the houses in the places of work. We have to create confidence in their minds. In the due course of time, they will come back when things normalize,” he said.
Gadkari also said that the purpose of government is to protect the local businesses to ensure “an Indian alternative to Chinese imports”. “We need to protect. Duty should be imposed on the Chinese products. I have requested the Ministry of Commerce,” Gadkari said.
The e-Adda, which was moderated by Anil Sasi, National Business Editor, and Ravish Tiwari, Political Editor.
The Express Adda is a series of informal interactions, organized by The Indian Express Group and the characteristics of the people in the center of the change. The former Chief Economic Advisor Arvind Subramanian and AIIMS director Dr Randeep Guleria were the last guests to the e-Adda.
📣 The Indian Express is now in the Telegram. Click here to join our channel (@indianexpress) and stay up to date with the latest news
For all the latest News from Business, download Indian Express of the Application.
.
[ad_2]
