New Delhi, Jun 23 (KNN) In a bid to provide subordinate debt to stressed Micro, Small and Medium Enterprises (MSMEs), the government is finalising the guidelines of the Rs 20,000 crore subordinate debt scheme, a government official said.

While addressing a webinar organised by Dun & Bradstreet India, on Monday, Additional Secretary and Development Commissioner MSME Devendra Kumar Singh said, ''the guidelines for the stressed subordinate debt scheme are under finalisation.''

He also said that small firms will have to diversify and be on top of the changed demand for goods and services to keep their businesses going.

''MSMEs have that capability. A few months ago, nobody knew about personal protection gear—there was little production in India. Today, we are in a position to export. That is the strength of Indian MSMEs. In such a short time, people can redesign businesses, bring in a new supply chain methodology and stand up on their feet," Singh added.

Last year, KNN India had reported that MSMEs were capable of contributing 50 per cent to the country's Gross Domestic Product (GDP).

"MSMEs are capable of achieving the 50 per cent contribution to the country's GDP, provided that the government take care of the issues which are being faced by the MSMEs and concerning them,'' Federation of Indian Micro and Small & Medium Enterprises (FISME) President Animesh Saxena Saxena had told KNN India.

Saxena also said that just changing policies and re-looking won't do much, instead they will have to re-work.

''They (Government) have to re-work instead of re-looking at the policies. They need to come up with better policies to promote these sectors. It can't be done with the existing policies,'' he said.

On several occasions, Union Minister of MSME Nitin Gadkari has said the government is planning to take the contribution of MSME sector to the country’s total GDP to upto 50 per cent from the current 29 per cent.

Gadkari also said that the sector currently employs about 11 crore people and the government would take this figure to 15 crore in the next 5 years.