Ahmedabad: Union Minister for Micro, Small and Medium Enterprises (MSMEs), Kalraj Mishra, made a candid admission that payments to MSME workers after demonetisation remained a major problem for the sector. Mishra, however, said that the situation is “improving slowly”. He was speaking at the Vibrant Gujarat seminar on MSMEs.

However, the situation in Morbi’s ceramic industry is improving, the Minister said. Over 27% of MSME units in ceramic cluster at Morbi were shut down after demonetisation because unit owners were not able to pay workers their salaries.

Mishra further said that the central government has begun a “zero defect, zero effect” certification process for which it has received more than 64,000 online applications. He added that appropriate funding will be provided as per the ZDZE certification level to brass, silver, gold, platinum and diamond units.

A new scheme called the ‘revival and rehabilitation of MSMEs’ is being formulated for enterprises that fear that they will turn into non-performing assets (NPAs), Mishra said.

“A support loan proposal for NPAs up to Rs 10 lakh will be scrutinized by the bank manager, while anything greater but less than Rs 25 crore will be scrutinized by a special committee formed under our ministry. Financial aid for such units can then be arranged,” the minister said.

He further said that in Ahmedabad, a 3D printing centre has been started at the Indo-German tool room where even training is provided. Besides the ASPIRE scheme, the MSME Ministry has offered through banks a 30% cash credit to entrepreneurs of digital start-ups.

When asked about the BJP’s prospects in the upcoming UP elections, Mishra claimed the BJP will form a majority government.

When asked about who the CM will be if the BJP comes to power in Uttar Pradesh, Mishra said, “It is the BJP parliamentary board that decides the CM. I am certain that the BJP will come to power. People like Rahul Gandhi have nothing much to say or criticise,” Mishra said.

Source: The Times of India