Government Working To Roll Out Rs 1 Lakh Crore Revolving Fund For MSMEs: Union Minister Nitin GadkariUnion Minister for Road Transport and Highways Nitin Gadkari. (PTI)

The Government is set to roll out a revolving fund of Rs one lakh crore to ensure timely refunds of dues for the small businesses which have been badly hit by the COVID-19 crisis and the nationwide lockdown, reports Hindustan Times.

The development was announced by Union Minister Nitin Gadkari on Friday (24 April) during a video conference organised by Associated Chambers of Commerce and Industry of India (Assocham).

He also informed that the Government was on course to amend the definition of MSME and that the proposal regarding the same is awaiting approval from Prime Minister (PM) Narendra Modi.

While sharing the details about revolving fund, Gadkari said, “We have decided to set up a (revolving) fund of Rs 1 lakh crore and we will insure it and its insurance will be paid by the government. We will fix a formula among (the stakeholders) and provide minimum Rs 1 lakh crore and the interest on the same.”

It should be noted that multiple industry bodies have urged the government to create liquidity by clearing dues from government departments, public sector undertakings, as well as income-tax and GST refunds.

Gadkari also shared that he had reached out to the Union Ministry for Labour, Santosh Gangwar, urging him to leverage Rs 80,000 crore lying with the Employees State Insurance Corporation.

However, he added, the proposal will also have to be examined by the MoF and PM's Office.

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