6 lakh MSMEs restructured, coronavirus offers opportunity to Indian industries: Gadkari

government on Monday said in Rajya Sabha that six lakh industries under MSME have been restructured and urged sector to look at opportunities for expansion following global impact of coronavirus.

Replying to a query during Question Hour in Upper House, MSME and Ro Transport and Highways Minister Nitin Gkari said six lakh industries under MSME have alrey been restructured and by December 31, extended date for restructuring, numbers will increase.

"It is t practically correct to say anything about this, but because of coronavirus w lot of opportunities are with Indian industries," Gkari said in reply to ar supplementary on impact of Coronavirus on MSMEs.

In reply to ar query regarding job losses or production losses in sector, minister said, " straight answer is ." He said as far as exports and employment were concerned y were growing, but underlined need for timely payment to industries by central and state government undertakings.

" major problem is state government and central undertakings... y don't give money of small MSME," he said and ded that if one company is impacted thousands are rendered jobless.

re is provision to protect interests of industries under MSME in NCLAT Act, he said.

He said his department was contemplating taking action against hes of such central or state undertakings which do t make payments within three months and steps included 12 per cent interest on amount.

He ted that earlier date of restructuring which was March 31 has been extended to December 31 and exuded confidence that a large number of industries will benefit from move.

"We have restructured 1.5 lakh accounts," minister said, ding massive steps were on so that account should turn NPA.

Stressing that government is extending full support to MSMEs, minister said that recommendations of UK Sinha Committee have been accepted and "during January 2019 to January 2020, over six lakh accounts have been restructured under circular covering loans of Rs 25,000 crore."

Besides, one of recommendations of Sinha committee pertaining to "Fund of funds" to provide debt and equity support is being finalised.

He ded: "Finance Secretary has approved it...it will go to Cabinet."

In dition, distressed asset fund is being created, he said and ded that demonetisation has h impact on sector. Rar this along with GST has ushered in ecomic reforms.

Im Source: PTI