New Delhi: Two days after the Centre announced extension of lockdown in the country because of the coronavirus outbreak, media reports on Sunday stated that the Central government is finalising a relief package for the Micro, Small and Medium Enterprises (MSME) sector. Also Read - 'Would Help Small Businesses, MSMEs, Poor': PM Modi Applauds RBI's Relief Steps
The development comes as the MSME sector has been worst-hit because of the nationwide lockdown announced in the country. As per reports, Union Ministry has sent a list of relief measures needed to revive the MSMEs to the Finance Ministry. Also Read - All Pending MSME Loans to be Restructured by March 15: Sitharaman
Union Minister Nitin Gadkari, who handles the MSME portfolio, said that his ministry has already sent recommendations for a relief package to the Finance Minister and Prime Minister Modi.
Hoping that the finance package will be announced for the MSME sector, Gadkari said his ministry is trying to give relief to the maximum extent possible.
As per updates, the MSME ministry wants the new measures to improve liquidity flow for the small and medium industries. The MSME ministry also in favour of enhancing a Credit Guarantee Scheme limit to improve credit facility to MSMEs.
Part from this, 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.
Soon after the meeting of PM Modi with FM Sitharaman on Saturday, a letter from the PMO was issued, stating that PM Modi discussed strategies and interventions to support MSMEs and farmers, enhance liquidity and strengthen credit flows.