Union minister Nitin Gadkari on Monday said that 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. Speaking at the AGM of Bharat Chamber of Commerce, the MSME and Road Transport minister 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,” he said.
Chamber President Ramesh Kr Saraogi suggested that an external agency be appointed to monitor the outstanding dues with the government and public sector companies who are supposed to clear the dues in 45 days of supplies. As part of the Aatmanirbhar Bharat package announced in May, MSME dues from central government agencies and CPSEs should have been paid in 45 days. The Centre had on December 10 stated in an official statement that over Rs 21,000 crore of MSME dues have been paid in the past seven months by central government agencies and CPSEs.
Also read: Struggling to Get a Business Loan? Now Borrow Money Instantly with Razorpay’s ‘Cash Advance’ Credit Line
The minister also sought industry’s help 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. On the high logistics cost of 18 per cent in India compared to 10 per cent in China and 12 per cent in Europe, he said that the country needs to use fuel blended with ethanol to bring it down.