Govt preparing Rs 1 lakh cr MSME package: Gadkari

New Delhi: The government is preparing a Rs 1 lakh crore MSME package to make sure that timely refunds of dues takes place.

Tne government will come up with a formula for the micro, small and medium enterprises (MSME) to provide the relief of Rs 1 lakh crore.

“We have decided to set up a (revolving) fund of Rs 1 lakh crore and we will insure it and its insurance will be paid by the government,” said Transport and MSME Minister Nitin Gadkari.

While speaking at a video conference hosted by the industry chamber ASSOCHAM, Gadkari said that the MSME ministry is in the final stages of the preparing the scheme and will soon send it to the finance ministry for its approval.

The Minister also said he has requested Union Finance Minister Nirmala Sitharamana to expedite the process of tax refunds. He has suggested that tax refunds should be paid within eight days of filing returns.

Gadkari said that he has also requested Union Labour Minister Santosh Gangwar to make good use of Rs 80,000 crore that is lying with the Employees State Insurance Corportation. He said the pressure for MSMEs for April Salaries is increasing and to take care of the immediate crisis, MSMEs can be given some relief for the Rs 80,000 crore 

The government is about to redefine MSMEs. This will done based on MSMEs annual revenue, replacing the definition that relied on self-declared investment on plant and machinery.