Coronavirus and lockdown are no doubt a serious threat to the economy. But, it can be turned into opportunity. “The MSME sector will tide over the huge blow caused by the lockdown, and reduce Chinese import dependence by ramping up domestic manufacturing with the government support,” Union Minister Nitin Gadkari has said.
In a video-conference with PTI, the MSME Minister said the government was working on a “war footing” to resolve issues – like working capital crunch and access to affordable financing – faced by the sector, as millions of units stare at staggering losses. Gadkari said the committees constituted by the Prime Minister’s Office are continuously monitoring and assessing the situation on the ground and would suggest if and when the lockdown can be lifted in certain sectors for normal operations to resume, and added that ‘work should begin where possible while keeping the virus at bay’.
Turning “crisis into opportunity”, India needs renewed focus on infrastructure in the wake of the damage caused by Covid-19 and talks are on with State governments to re-start highway construction projects where migrant labourers can be gainfully employed, Gadkari said.
Gadkari, who also holds the portfolios of Road Transport and Highways, said talks are on with State governments for facilitating safe return of migrant labourers, an estimated 20 lakh of whom are in shelters pan-India. “I had a meeting with road sector officials. Work can be re-started at projects with condition that adequate measures are taken for safeguard against coronavirus. We have to follow guidelines. At some places collectors have given permission, some not. We are doing a follow up along with the chief secretaries of the states,” he said.
Gadkari said nearly 8-10 lakh units will be restructured in the coming days, asserting that owners will have to take care of their workers and put in place mechanisms for proper sanitisation as a preventive measure once they return to work.
The Minister also informed that a Rs 10,000 crore “Fund of Funds” has been approved by the Finance Committee and will be placed before the Union Cabinet for approval. This fund, he said, will facilitate MSMEs to raise money from the capital market, as a portion of their equity will be purchased by the government.
“We will encourage MSMEs to enter the capital market and attract foreign investments, increase exports from the sector through large-scale production and create jobs,” the Minister said. Several nations want to source medical devices, masks and ventilators from India in the wake of the virus outbreak, and this is a golden opportunity for the country’s MSMEs to enhance their production capabilities for the future. Same is applicable to other sectors too.