MSME sector will tide over corona crisis: Gadkari

New Delhi: 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 videoconference 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".

The MSME Minister 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.

Gadkari 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.