In order to strengthen micro, small and medium enterprises (MSME) sector, Union Minister Nitin Gadkari has said that the government will soon take a call on the recommendations of U K Sinha committee.
The committee had recommended creation of distressed asset fund with a corpus of Rs 5,000 crore, insurance coverage to employees of MSMEs on the lines of Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) schemes, and cash flow-based lending.
Gadkari further noted that the issues being faced by MSMEs such as non-payment & delay in payments, will be dealt firmly. Referring to instances where goods are supplied by MSMEs but a particular person or entity does not make payment after taking their delivery on multiple occasions, Gadkari said stringent action needs to be taken against such habitual offenders & the government will certainly take remedial measures in this regard.