Govt looking at new ways to address MSME dues issue: Nitin Gadkari

New Delhi, Dec 29 (KNN) MSME Ministry is thinking about fresh plans and laws to find a solution to the receivables issue as outstanding dues are creating working capital problems for the sector, said Union Minister of Micro, Small and Medium Enterprises (MSME) Nitin Gadkari.

While speaking at the AGM of Bharat Chamber of Commerce (BCC) on Monday, Gadkari said, "The ministry is looking at new plans and laws to find a solution. It is creating working capital problems for the sector.

BCC President Ramesh Kr Saraogi suggested appointing an external agency to monitor the outstanding dues with the government and public sector companies who are supposed to clear the dues in 45 days of supplies.

Earlier, on December 10, the government had stated in an official statement that over Rs 21,000 crore of MSME dues have been paid in the past seven months by central government agencies and CPSEs.

The minister also sought industry’s help to raise the rural economy from Rs 80,000 crore to Rs 5 lakh crore for employment generation in agriculture, rural and tribal sectors in 115 focus districts.

Commenting on the high logistics cost of 18 per cent in India compared to 10 per cent in China and 12 per cent in Europe, he said that the country needs to use fuel blended with ethanol to bring it down.