6 lakh MSMEs restructured, coronavirus offers opportunity to
New Delhi, Mar 16 () The government on Monday said inRajya Sabha that six lakh industries under MSME have beenrestructured and urged the sector to look at opportunitiesfor expansion following the global impact of coronavirus.
Replying to a query during the Question Hour in theUpper House, MSME and Road Transport and Highways MinisterNitin Gadkari said six lakh industries under MSME havealready been restructured and by December 31, the extendeddate for restructuring, the numbers will increase.
"It is not practically correct to say anything aboutthis, but because of coronavirus now lot of opportunities arewith the Indian industries," Gadkari said in reply to anothersupplementary on impact of Coronavirus on MSMEs.
In reply to another query regarding job losses orproduction losses in the sector, the minister said, "Thestraight answer is no."
He said as far as exports and employment were concernedthey were growing, but underlined the need for timely paymentto industries by central and state government undertakings.
"The major problem is state government and centralundertakings... they don't give money of small MSME," he saidand added that if one company is impacted thousands arerendered jobless.
There is no provision to protect the interests ofindustries under MSME in NCLAT Act, he said.
He said his department was contemplating taking actionagainst the heads of such central or state undertakings whichdo not make payments within three months and the stepsincluded 12 per cent interest on the amount.
He noted that the earlier date of restructuring whichwas March 31 has been extended to December 31 and exudedconfidence that a large number of industries will benefitfrom the move.
"We have restructured 1.5 lakh accounts," the ministersaid, adding massive steps were on so that no account shouldturn NPA.
Stressing that the government is extending full supportto MSMEs, the minister said that the recommendations of UKSinha Committee have been accepted and "during January 2019to January 2020, over six lakh accounts have beenrestructured under the circular covering loans of Rs 25,000crore."
Besides, one of the recommendations of Sinha committeepertaining to "Fund of funds" to provide debt and equitysupport is being finalised.
He added: "Finance Secretary has approved it...it willgo to the Cabinet."
In addition, distressed asset fund is being created,he said and added that demonetisation has had no impact onthe sector. Rather this along with GST has ushered ineconomic reforms. MBI NAMRT RT