NEW DELHI: Micro, small and medium enterprises (MSME) minister Nitin Gadkari and small businesses on Tuesday complained about the 59-minute loan scheme being slow in disbursing loan, while asking FM Nirmala Sitharaman to ensure that their dues from the government are cleared expeditiously.
Gadkari flagged both the concerns during a meeting convened by FM as part of a series of consultations in what is seen as a precursor to a set of steps to rev up economy.
While the scheme was launched by PM Narendra Modi last year, businesses have been complaining that the portal issues the sanction letter quickly but banks are slow in disbursing loans. During a meeting with RBI governor Shaktikanta Das earlier this year, industry representatives had estimated that only around 10% of the sanctioned amount was getting disbursed and had suggested that the money should be released within two weeks.
They raised the concern before the FM on Tuesday and expect that the government fix the major problem with the high-profile scheme.
They also complained about the poor disbursal of loans despite a credit guarantee fund being set up to ensure that MSMEs did not suffer due to lack of loan flow.
In response to their other major worry related to delayed payments even from government agencies, Sitharaman told the gathering that the administration was estimating the amount of dues under two heads — disputed and undisputed — and once the exercise is completed, the release of the undisputed amount would be expedited.
Gadkari also called for a need for import substitution and asked industry representatives to identify products that could be produced locally, instead of being shipped into the country.
When industry representatives pointed to easier rules being put in place by some states, Sitharaman suggested that the businesses could provide a list of some of the steps taken in recent months and the Centre could approach other chief ministers to move ahead with reforms.
She also asked industry representatives to send their response to the U K Sinha committee over the next three-four days, indicating that the recommendations would be implemented quickly.
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