Union Minister Nitin Gadkari has earned a reputation in the Cabinet as a crisis manager and doer, who has revived the highways construction sector. (File)
Union Minister in charge of Road Transport and Highways and Micro, Small and Medium Enterprises Nitin Gadkari, who was the guest at the Indian Express e-adda on Monday, said the vision of the government for the country’s economic revival was “perform, reform, transform”. He also said the Centre and Central PSUs would clear pending MSME dues in 45 days.
“The govt has pumped in Rs 20 lakh crore. We need maximum investment in power, road, infrastructure sector by increasing liquidity into the market. This liquidity will increase the speed of the country’s economic wheel. We also need economic reforms,” Nitin Gadkari said.
Amid the health challenges posed by Covid-19, two key sectors are crucial for the country’s economic revival — transport infrastructure and MSMEs, for which the government has announced a full credit guarantee on fresh loans up to Rs 3 lakh crore.
Maintaining that besides fighting the war against coronavirus, the government was also fighting an economic war. “Banking system is facing crisis. The MSMEs are also in a problem. Very crucial time for Indian economy. We need to consider the problem of the poor people. Gareeb, Mazdoor and Kisan have to be looked after,” Gadkari said.
The survival and revival of MSMEs is at the heart of the Rs 20 lakh crore package announced by the government over the week, and more measures are expected to breathe life into the economy. Gadkari also said there was a need to pump liquidity into the markets for revival of economy.
Express e-Adda LIVE Updates: Union Minister Nitin Gadkari has been brainstorming with officials and industry stakeholders to ensure that the speed of road construction does not suffer. (File)
Thanks for joining our Express Adda live blog with Union Minister Nitin Gadkari. Do join us for an E-explained with Dr Naushad Forbes, Co-chairman, Forbes Marshall, former President, CII on understanding Corporate India’s challenges and strategies as they ramp up capacity and navigate the new normal on May 20 at 5 pm.
Union Minister Nitin Gadkari says there should be an Indian alternative for Chinese imports. "We should protect our industry and duty should be imposed on chinese goods. I have requested the Commerce Ministry on this," Gadkari says.
When asked on vehicle scrapping policy, Gadkari says approval is needed from from different departments and is stuck due to it. "It will be a great boon for the auto mobile sector and cost of spares will go down besides decrease in pollution. It will also boost automobile demand," he says. The policy is expected to help the automobile industry as it will reduce the need to import of raw materials such as copper and aluminum, which can be extracted from scrap.
Union Minister Nitin Gadkari is of the opinion that the govt should not invest in public-private investments. Pointing out some works being carried out under his ministry, Gadkari also said the govt was in the process of turning 17 roads into airstrips and projects like the Char Dham road and connection between Mansarovar and Pithoragarh would lead to employment and boost economy of Uttarakhand. On the Covid-19 situation opening up more opportunities, Gadkari says technology can help reduce cost of MSMEs and other industries.
Union Minister Nitin Gadkari says there is a need to pump money into the markets through foreign investment and govt measures. "Need liquidity to accelerate the economy. The real estate situation is in a bad state. There is a need to make smart villages. Real estate companies can come to villages and construct affordable, low-cost hosuing. There will be good demand in rural areas," Gadkari says.
Union Minister Nitin Gadkari says strengthening NBFCs is important for giving loans to MSMEs. "Increasing the purchasing power and creating demand subsequently is important for MSMEs to get back on track. Time for country to get more and more foreign funds to revive the economy," says Gadkari. The minister also said there was a need to create competition in financial institutions to strengthen NBFCs and reduce dependency on banks.
Union Minister Nitin Gadkari says the goal of his ministry is to increase the turnover of the village industry from Rs 88,000 crore to rs 5 lakh crore in the next 2 years. "MSMEs employ an estimated 11 crore persons. We plan to include more 5 crore jobs in next 2 years," Gadkari says. He further says the notion that MSMEs are dependent on migrant labour is wrong. "We have to take care of migrant labourers and are providing them all support. In due course of time, when the atmosphere is conducive, I am sure they will come back from homes to workplaces if we create positivity and confidence in their mind," says Gadkari.
When asked why lending by banks to MSMEs has not been as per RBI's liking, Nitin Gadkari says the government has given permission to district cooperative banks and NBFCs to finance MSMEs. "Even 75% of the loan is secured as govt is giving guarantee. Our every scheme is secured, So there is no risk. The funding by NBFCs got afftected due to the ILFS crisis," says Gadkari.
Union Minister Nitin Gadkari says the government is taking all preventive measures as well as looking to spur growth. On dues of MSMEs pending with the government and PSUs, Gadkari says it is a crucial problem. "The Centre and Central PSUs would clear pending MSME dues in 45 days. I have also requested other firms to clear pending dues of MSMEs since all capital is working capital for them. We also have the Samadhan portal where the issues can be solved. Working capital is like oxygen for MSMEs," says Gadkari
Centre’s share in the total pending dues for MSMEs is Rs 10,000 crore, Expenditure Secretary TV Somanathan had told The Indian Express. The dues from the 26 top central public sector enterprises to MSMEs is Rs 773 crore, and adding the dues of defence establishments, railways, departmental undertakings, the outstanding payments from the central government and from central public sector undertakings are less than Rs 10,000 crore.
Union Minister Nitin Gadkari says many industries want to shift base out of China and countries like Japan and US are giving such firms benefits to boost investment. On the govt's Rs 20 lakh crore economic package, Gadkari says it will boost liquidity in the market and attract investment. "In the next two years, development of roadside industrial clusters, smart cities and logistical parks will be the focus," Gadkari says.
Union Minister Nitin Gadkari says the country needs to understand the art of living with Covid-19. "Cities like Mumbai has been worst hit. We need to maintain social distancing. The govt has pumped in Rs 20 lakh crore. We need maximum investment in power, road, infrastructure sector by increasing liquidity into the market. This liquidity will increase the speed of the country's economic wheel. We also need economic reforms. Perform, reform, transform is the vision for the government," says Gadkari.
Union Minister Nitin Gadkari says we are fighting the war against coronavirus as well as an economic war. "Banking system is facing crisis. The MSMEs are also in a problem. Very crucial time for Indian economy. We need to consider the problem of the poor people. Gareeb, Mazdoor and Kisan have to be looked after," Gadkari says.
During the lockdown, Union Minister Nitin Gadkari has been brainstorming with officials and industry stakeholders to ensure that the speed of road construction does not suffer. One of the most senior members of the Union Cabinet since 2014, Gadkari has launched a "bank" of schemes, ideas, innovation and research portals for getting MSMEs back in business and alleviate the distress in a sector that makes up about 45 per cent of the country’s manufacturing output, 40 per cent of exports, and almost 30 per cent of the national GDP.
Welcome to our live blog. Union Minister in charge of Road Transport and Highways and Micro, Small and Medium Enterprises Nitin Gadkari is our guest at the Indian Express e-adda today. Gadkari is likely to speak on the two key sectors that are crucial for the country’s economic revival — transport infrastructure and MSMEs, for which the government has announced a full credit guarantee on fresh loans up to Rs 3 lakh crore.
Welcome to our live blog. Union Minister in charge of Road Transport and Highways and Micro, Small and Medium Enterprises Nitin Gadkari is our guest at the Indian Express e-adda today. Gadkari is likely to speak on the two key sectors that are crucial for the country’s economic revival — transport infrastructure and MSMEs, for which the government has announced a full credit guarantee on fresh loans up to Rs 3 lakh crore.