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Jul 15, 2020
 
Govt to soon frame rules clear pending dues of MSMEs: Nitin Gadkari
 

In order to tackle the issue of delayed payments to Micro, Small and Medium Enterprises (MSMEs) which have been a matter of grave concern, the government will soon come up with rules to clear pending dues and to ensure financial viability of this sector, said Nitin Gadkari.

Gadkari said that a solution to the pressing issue of untimely and stuck payment to small businesses will take at least four to six months, citing difficulties posed by the outbreak of Covid-19.

While addressing the members of Domestic Air Cargo Agents Association of India on Tuesday, the MSME Minister said, "We are seriously considering making rules on this (delayed payments). But the current period is fraught with difficulties".

"We are facing problems in making a decision because Covid-19 has made it difficult for everyone. You will have to wait for four to six months", Gadkari added.

Gadkari, further revealed that the MSME ministry has found a way to settle Rs. 40,000 crore worth of dues through its Samadhan portal so far adding that "A lot of money owed to MSMEs is stuck with central government undertakings, state governments and private sector".

Later, the MSME minister said that India needs to start using its grounded aircraft and minor airports for cargo handling to bring down logistics costs.

"The aircrafts which are grounded, we can use them at a certain cost in the interest of the nation. We can use old planes through PPP, it will help in reducing costs substantially", he added.

He said such aircrafts can be used to transport fresh fruits, other perishable commodities and medicines to improve efficiency of the logistics sector, which will ultimately help bring down prices of such commodities.

"I have many suggestions for air cargo movement. There is a lot to do, especially in the case of fruits, vegetables and fish. Our marine economy is worth Rs. 1 trillion. We want to scale it up to Rs. 6 trillion, but our biggest problem is transportation", he stated.

India needs to bring down its logistic cost from the existing 13 per cent, he concluded.

 
 
 
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