Chidambaram questions Sitharaman & Gadkari on MSMEs, asks them to 'settle their accounts'

Congress on Friday took a dig at Centre government by highlighting contradictory statements made by  Finance Minister Nirmala Sitharaman and Union Minister Nitin Gadkari on condition of MSMEs (micro, small and medium enterprises) in country.

Former Finance Minister P. Chidambaram pointed out that MSME Minister Nitin Gadkari said that government ncies owed MSMEs Rs 5 lakh crore in unpaid dues. He furr highlighted that in ar statement  Finance Minister Nirmala Sitharaman on Wednesday anunced Rs 3 lakh crores in collateral-free loans for 45 lakh MSMEs. "So, who is lender and who is borrower?" he questioned.

Taking to Twitter Chidbambaram said "Minister Nitin Gadkari says that governments and PSUs owe Rs 5 lakh crore as unpaid dues to MSMEs and Minister Sitharaman says she will offer collateral-free loan of Rs 3 lakh crore to MSMEs (numbering 45 lakhs). So, who is lender and who is borrower?!"

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former finance minister furr asked m to settle down ir accounts. He said: "Will two ministers 'settle ir accounts' first and let MSMEs save mselves without government's 'help'?"

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FM anunces collateral-free automatic loans 

On Wednesday Finance Minister Nirmala Sitharaman anunced collateral-free automatic loans for businesses, including MSMEs of up to Rs 3 lakh crore. Under this initiative, borrowers with up to Rs 25 crore outstanding and Rs 100 crore turver would be eligible for special collateral-free loan. This loan will have a 4-year tenure with a moratorium of 12 months on principal repayment and interest will be capped.

re will be a 100 per cent credit guarantee cover to banks and NBFCs on principal and interest. initiative can be availed till October 31, 2020, and guarantee fee and fresh collateral would be required. 45 lakh units can resume business activity and safeguard jobs on back of scheme. This decision comes as a part of Rs 20 lakh crore ecomic pack anunced by Prime Minister Narendra Modi on Tuesday.

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