Micro, Small and Medium Enterprises (MSME) sector is on verge of collapse, said Union minister Nitin Gadkari on Thursday. He urged major industries for releasing the outstanding dues to such companies within a month, said the minister.
The position of MSMEs was worst earlier and now they are struggling to survive, said Gadkari.
He also mentioned that the long pendency of dues pertaining to MSME units by the central government, state governments, public sector undertakings and major industries was “very high”.
“My request to all of you, as members of major industries, if it is possible for you to at any cost release the payment within a month. Don’t take more time than that otherwise the situation is very bad,” the MSME minister said in an interaction via video-conference with the members of SIAM Institute.
“But still if anywhere you have a problem, please be positive about this sector, because this is really on the verge of collapse. Now it is a very important thing if you can help them, within a month if you can give their payment it will be good,” Gadkari said.
The minister further said he was trying to unveil a scheme aiming of setting up of a “rolling fund” where the interest cost on the payments due to MSMEs shall be endured either by the supplier or the purchasing industry.