The move to clear MSME receivables is part of a slew of measures being announced to help a sector hit hard by the coronavirus lockdown, which began on March 25.
An almost deserted apparels factory in Noida. (Photo by Shekhar Ghosh)
HIGHLIGHTS
- Measures for MSMEs include collateral-free loans
- Receivables to be cleared by govt, CPSEs
- Fin Min briefs reporters after PM’s special address
The government and Central Public Sector Enterprises (CPSEs) will clear receivables owed to MSMEs within 45 days, Finance Minister Nirmala Sitharaman said on Wednesday (May 13).
The move is part of a slew of measures being announced to help MSMEs (Micro, Small and Medium Enterprises) hit hard by the coronavirus lockdown, which began in late March and is now set to be extended beyond the current deadline: May 17.
Nirmala Sitharaman and Anurag Thakur, the Minister of State for Finance, briefed reporters on a financial action plan that includes collateral-free automatic loans and a new rule on tenders for government procurement.
This follows Prime Minister Narendra Modi’s announcement of a Rs 20 lakh crore economic package to fight the coronavirus crisis and make India self-reliant.
Over 47,000 people in India are currently carrying the SARS-CoV-2 virus, and over 24,000 have recovered, according to central government data.
As many as 2,415 have died.
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