Senior Congress leader and former Finance Minister P Chidambaram on Friday took a dig at the government highlighting inconsistent statements issued on the MSME (micro, small and medium enterprises) sector by Finance Minister Nirmala Sitharman and Road Transport Minister Nitin Gadkari.
Chidbambaram took to Twitter and said, “Minister Gadkari says that governments and PSUs owe Rs 5 lakh crore as unpaid dues to MSMEs Minister Sitharaman says she will offer collateral free loan of Rs 3 lakh crore to MSMEs (numbering 45 lakhs) So, who is the lender and who is the borrower?!”
Minister Gadkari says that governments and PSUs owe Rs 5 lakh crore as unpaid dues to MSMEs
Minister Sitharaman says she will offer collateral free loan of Rs 3 lakh crore to MSMEs (numbering 45 lakhs)
So, who is the lender and who is the borrower?!
— P. Chidambaram (@PChidambaram_IN) May 15, 2020
Chidambaram was referring to MSME Minister Nitin Gadkari’s remarks who while talking to a news channel said that government agencies owed MSMEs Rs 5 lakh crore in unpaid dues.
“Will the two ministers ‘settle their accounts’ first and let MSMEs save themselves without government’s ‘help’?” said the former finance minister while criticizing both the ministers.
Will the two ministers ‘settle their accounts’ first and let MSMEs save themselves without government’s ‘help’?
— P. Chidambaram (@PChidambaram_IN) May 15, 2020
Sitharaman had on Wednesday announced that Rs 3 Lakh Crore will be made available for collateral free loan for those MSME units which have Rs 25 crore outstanding loan payments or Rs 100 crore turnover. These loans will be available with a 4-year tenure and a moratorium of 12 months. The move is expected to benefit 45 lakh units.
Government will provide stressed MSMEs with equity support, Sitharaman informed. Central government will facilitate the provision of Rs 20,000 Crores as subordinate debt, she added.
The Prime Minister had announced the ‘Aatmanirbhar Bharat’ package that will focus on making India self-reliant amidst the Coronavirus pandemic and the subsequent weeks of lockdown.