Gadkari Ensures MSMEs Against Delayed Payments, Introduces CLCS To Entrepreneurs

MSME Minister Nitin Gadkari launched Credit Linked Capital Subsidy (CLCS) Scheme for MSEs and SC-ST Entrepreneurs
Gadkari Ensures MSMEs Against Delayed Payments, Introduces CLCS To Entrepreneurs
Image credit: PIB

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Entrepreneur Staff
Correspondent, Entrepreneur India
2 min read

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Union Minister Nitin Gadkari reiterated the Government’s commitment to solve long standing problems of the MSME sector and give it the required support so that it can realize its full potential in terms of its contribution to GDP and employment generation. At a workshop organized by MSME ministry to discuss the problems related to MSME like delayed payments, Minister has put across the ways to deal with the issue of delayed payments and introduced a scheme for the furtherance of the entrepreneurs.

Declarations made by Minister for stakeholders and Entrepreneurs  

  • Gadkari appealed the stakeholders to bring ‘Samadhan’ portal in use so that adequate data could be extracted about the intended defaulters. Samadhan is a portal launched by MSME ministry to help employers and workers to raise industrial dispute online. However, this will only aid industries belonging in the central sphere, essentially public sector companies, banks, insurance, major ports, mines, Food Corporation of India, among others.
  • Minister also urged the entrepreneurs and stakeholders to register themselves on ‘Bharat Craft’ which would help them to bring their products on the portal for marketing and would increase its demand. Ministry has already notified that all companies registered with the Companies Act 2013 with a turnover of more than Rs. 500 crore and all Central Public Sector Enterprises shall be required to get themselves on boarded on the TRDS (Trade Receivables Discounting System) platform, set up as per the notification of the Reserve Bank of India.
  • He further added a disciplinary statement mentioning that the companies who get supplies of goods and services from MSEs and whose payments to the suppliers exceeds 45 days from the date of products acceptance, shall submit a half yearly return of the Ministry of Corporate Affairs stating the amount of payments due and reason of the delay

 Re-Launch of CLCS (Credit Linked Capital Subsidy) Scheme

  • Minister of Road and Transport and MSME re-launched CLCS Scheme. This scheme provides 15% subsidy for additional investment upto Rupees 1 Crore in purpose of technology upgradation by MSEs.
  • It provides 10% additional subsidy to the SC-ST entrepreneurs

Various stakeholders, entrepreneurs and bankers came ahead along with their problems and suggestions related to the delayed payments and upcoming schemes by the Ministry. With respect to it, Secretary MSME Shri Arun Kumar Panda assured stakeholders that all their suggestions and problems will be looked into by the Ministry.

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