Government Contemplating Fresh Plans, Laws to Solve MSME Receivables Issue: Nitin Gadkari

The Micro, Small and Medium Enterprises Ministry is contemplating fresh plans and laws to find a solution of the receivables issue as outstanding dues are creating working capital problem for the sector, said Union Minister Nitin Gadkari while speaking at the AGM of Bharat Chamber of Commerce.

The MSME and Road Transport minister also acknowledged that the receivables issue continues to be a major problem.

“The ministry is looking at new plans and laws to find a solution. It is creating working capital problem for the sector,” Gadkari said.

Chamber President Ramesh kr Saraogi suggested to appoint an external agency to monitor the outstanding dues with the government and public sector companies, who are supposed to clear the dues in 45 days of supply. It will be as per the part of the Aatmanirbhar Bharat package which was announced this May, according to which the MSME dues from central government agencies and CPSEs should have been paid in 45 days.

On December 10, the Centre stated in an official statement that over Rs.21,000 crore of MSME dues have been paid in the past seven months by the central government agencies and CPSEs.

Gadkari also seeked help from the industry to raise the rural economy from Rs.80,000 crore to Rs.5 lakh crore for employment generation in agriculture, rural and tribal sectors in 115 focus districts.

He also suggested to blend fuel with ehanol to bring the high cost of logistics down from 18 percent.