Govt exploring new lending institutions to support MSMEs

Speaking at a meeting via video conferencing with the members of Calcutta Chamber of Commerce on impact of COVID-19 on MSMEs and the measures taken to address the challenges at hand, Gadkari said, "These are trying times as we are waging a war against COVID-19 pandemic as well as the economic instability caused by it." He requested all the stakeholders to work in tandem and urged the industry to maintain a positive attitude during this time to tide over the crisis.

The minister also stressed on usage of PPE (including masks, sanitiser, etc) and advised to maintain social distancing norms in personal life and at workplaces.

Apprising the representatives of recent announcement of Special Economic Package: Aatmanirbhar Bharat Abhiyan, he explained various support measures that have been announced for MSMEs such as collateral free automatic loan, distress fund, etc. He said that all these measures will provide the required support to MSMEs to face the current economic challenges.

The minister also informed them that there has been restructuring of 6 lakh MSMEs till March 2020 and the ministry is aiming to cover additional 25 lakh until December 2020. He added that the current contribution of MSMEs in export is 48 per cent, which may be increased to 60 per cent.

The Union minister mentioned that special focus towards export enhancement is the need of the hour. He further added that there is need to reduce cost on production, logistics etc to become economically viable.

The ministry of MSME is working on two booklets to cover details about last three year’s export and import, Gadkari said. He assured MSME representatives of all possible help from the government.

Fibre2Fashion News Desk (RKS)