The Centre is in the process of finalising a relief package for the MSME (Micro, Small and Medium Enterprises) sector, sources told NDTV today. The MSME sector has been one of the worst-hit following the lockdown to counter the highly infectious coronavirus and there has been a widespread expectation about a central package to revive it.
The ministry has sent a list of relief measures required to revive the MSMEs to the Finance Ministry.
At a webinar on Saturday, organized by the FICCI Ladies Organisations, Union minister Nitin Gadkari, who handles the MSME portfolio, said: "We have sent recommendations for a relief package to the Finance Minister and Prime Minister and I hope it will be announced soon. We will try to give relief to the maximum extent possible."
The MSME ministry, sources said, favours new measures to improve liquidity flow for the small and medium industries -- a subject that was canvassed during Prime Minister Narendra Modi's meeting with Finance Minster Nirmala Sitharaman and senior officials on Saturday.
A communique from Prime Minister's Office issued after the meeting, read: "At a meeting with Finance Minister and officials, PM discussed strategies and interventions to support MSMEs and farmers, enhance liquidity and strengthen credit flows".
The ministry is also in favour of enhancing a Credit Guarantee Scheme limit to improve credit facility to MSMEs.
Sources said the ministry also wants tax relief for the small and medium enterprises to reduce the financial burden on them imposed by the COVID-19 pandemic.
All government departments and Public Sector Units should clear all pending dues to MSMEs with interest, the ministry has suggested.