Government looking at new plans, laws to solve MSME receivables issue: Gadkari

At the begining of new year, The MSME and Road Transport minister, Nitin Gadkari said that the Micro, Small and Medium Enterprises Ministry is looking for consideration of new plans and laws, in order to find a solution of the receivables issue, since unpaid dues are creating working capital problem for the MSME sector.

Giving a speech at the AGM of Bharat Chamber of Commerce, union minister confirmed that the receivables issue continues to be a massive problem. "The ministry is looking at new plans and laws to find a solution. It is creating working capital problem for the sector," he stated.

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 within 45 days of supplies.

MSME dues from central government agencies and CPSEs should have been paid in 45 days, as a part of the Aatmanirbhar Bharat plan revealed  in May.

On December 10, the Government in an official statement had said "that more than Rs. 21,000 crore of MSME dues have been paid in the past seven months by central government agencies and CPSEs."

The minister also asked for industry's help to enhance 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.

Regarding the high logistics cost of 18% in India compared to 10% in China and 12% in Europe, he said: "the country needs to use fuel blended with ethanol to bring it down."