Working Capital is the Oxygen of any Industry, If this gets stopped the industry will die, Union Minister Nitin Gadkari said today. assuring the MSMEs that drastic steps are being taken by the government to get the delayed payments
Speaking at a two-day workshop on Credit Linked Capital Subsidy, the minister said that MSMEs problems cannot be ignored as 29 percent of government’s Gross Domestic Product(GDP) comes from this sector.
The Minister was speaking at a national workshop organized by the MSME Ministry to discuss the issue of delayed payments to MSMEs and ways to deal with it. He said that the Finance Ministry has recently taken some initiatives for the sector which will go a long way in strengthening it.
Besides Ministry officials and bankers, the workshop is being attended by entrepreneurs and various stakeholders from the MSME sector.
Presentations were made by TReDS, Bombay Stock Exchange, Chamber of Indian MS&M Enterprises, NeSL (National e-governance Services Limited) on the initiatives that are being taken to tackle the problem of delayed payments. Many stakeholders suffering from delayed payments, spoke about their complaints and placed suggestions before the Minister and senior officials.
Gadkari appealed all the stakeholders to use MSME Samadhan Portal so that sufficient data could be gathered about wilful defaulters, register themselves on stock exchanges and also assured them that the ministry will soon launch a marketing portal ‘Bharat Craft’ for the marketing of their products. Ministry has already notified that all companies registered with the Companies Act, 2013 with a turnover of more than Rs. 500 crore and all Central Public Sector Enterprises shall be required to get themselves
The Ministry has also notified that all companies who get supplies of goods or services from Micro and Small Enterprises and whose payments to suppliers exceeds 45 days from the date of acceptance of the goods or services, shall submit a half yearly return of the Ministry of Corporate Affairs stating the amount of payments due and reason of the delay.
Secretary MSME Shri Arun Kumar Panda assured stakeholders that all their suggestions and problems will be looked into by the Ministry. Shri Nitin Gadkari also Re-Launched the Credit Linked Capital Subsidy (CLCS) web portal on the occasion. CLCS is a scheme that provides 15% subsidy for additional investment up to ₹ 1 cr. for technology upgradation by MSEs.