Pay MSMEs within 45 days: FM to big corporates
- Sitharaman also said timely payments should be made to MSMEs by the government departments and state-run public sector entities
Finance Minister Nirmala Sitharaman on Thursday asked large corporates to avoid delaying payments to MSMEs in order to aid full recovery in the economy.
Sitharaman was speaking at the post-Budget interactive meeting with FICCI members.
“MSMEs have to be paid within 45 days and it is the responsibility of both private sector and government to get this implemented," Sitharaman said
She further added that timely payments should be made to MSMEs by the government departments and state run public sector entities.
The Finance Minister also assured that substantial proposals of projects are expected from States from April 1 this year.
The Union Budget allocated ₹1.3-lakh crore to be extended to states through a 50-year loan facility for enhanced capex implementation.
“My strong belief is in the month of April itself there should be substantial proposals coming from States so that release of funds can happen straightaway”, she noted.
The finance minister had announced a revamped credit guarantee scheme to provide MSMEs with more collateral-free credit. MSME credit guarantee.
Last year, it was proposed to revamp the credit guarantee scheme for MSMEs. The revamp scheme will go into effect on April 1, 2023, with a corpus infusion of 9000 crores. This will allow for an additional two lakh crores of rupees in collateral-free guaranteed credit. Furthermore, credit costs will be reduced by about 1%.
The government has implemented a number of reforms aimed at boosting MSMEs' growth in India while also improving their international competitiveness. Key experts and voices from the MSME platform had also shared their reviews for the MSME sector.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:2 Feb 2023, 11:24 PM IST
- Top Gainers
- Top Losers
- 52 Week High