Gadkari’s mantra for MSMEs to make India construction equipment hub: JVs, clusters, research labs, more
Ease of Doing Business for MSMEs: In order to help India become a manufacturing hub of construction equipment globally as part of the Atmanirbhar campaign, MSME Minister Nitin Gadkari on Tuesday urged its MSME units to focus on reducing imports, improving research and cutting costs without quality compromise and more. The minister addressing CII’s virtual exhibition on ‘Construction Equipment, Technology, Components & Aggregates’ requested industries in construction equipment to develop industrial clusters, technology centers, research labs, and upgradation of technology and skills.
The minister also stressed on the need for joint ventures and foreign collaborations for MSMEs to get easy finance and relevant technology support. “Government is also working on integrating and developing all kinds of transport like waterways, sea transportation, rail, road and air transports which will definitely reduce the logistic cost and help industries in a big way”, the minister added.
Despite the initiatives taken by the government in the past few years such as online portal for monitoring delayed payments, trade receiveables discount platform TReDS by RBI, credit linked scheme for easy access to credit and more, delayed payments by the government and private buyers continue to thwart small businesses’ growth with a liquidity crunch. To address this, the government including Finance Minister Nirmala Sitharaman and Nitin Gadkari have been urging buyers to clear MSME payments within 45 days.
On Tuesday, Gadkari again emphasized on paying dues of small businesses on priority even as he called upon large industries and business houses to treat this as an important matter, a statement by MSME Ministry said. He also asked CII members to help develop and grow ancillary units/industries to supply spare parts.
Out of 51,598 delayed payment applications filed by micro and small enterprises to Micro and Small Enterprise Facilitation Councils (MSEFC), only 3,643 have been disposed of by the council as of August 18, 2020, even as 8,519 applications involving Rs 1,836.40 crore payable have been rejected, as per the data available on MSME Samadhaan portal.