New Delhi, May 8 (KNN) Union Minister of Micro Small and Medium Enterprises (MSMEs) Nitin Gadkari has said that MSMEs are on the verge of collapse.

The minister also urged major industries to release the outstanding dues to such companies within a month.

During an interaction via video-conference with the members of SIAM Institute, Gadkari on Thursday said, “My request to all of you, as members of major industries, if it is possible for you to at any cost release the payment within a month. The situation is bad, don’t take more time.”

“But still if anywhere you have a problem, please be positive about this sector, because this is really on the verge of collapse. Now it is a very important thing if you can help them, within a month by releasing their payment,” Gadkari said.

The minister further said he was trying to unveil a scheme aiming of setting up of a “rolling fund” where the interest cost on the payments due to MSMEs shall be endured either by the supplier or the purchasing industry.

In last month April, while speaking to senior members of industry body FICCI via video conferencing, Gadkari had asked the industry to release payments due to MSME to help bring liquidity.

“MSMEs should be protected through this economic crisis,” he had said.

Gadkari also said that the MSME ministry is working to increase credit guarantees to the sector to Rs 5 lakh crore from the present level of about Rs 1 lakh crore wherein 75% of the advances granted by financial institutions are covered by the government’s Credit Guarantee Scheme.