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Home / India News / Settle your accounts first: Chidambaram to FM, Gadkari

Settle your accounts first: Chidambaram to FM, Gadkari

Gadkari, the Union minister for MSMEs and road transport and highways, had said government agencies are yet to clear dues to such enterprises amounting to more than Rs 5 lakh crore.

india Updated: May 15, 2020 13:39 IST
HT Correspondent
HT Correspondent
New Delhi, Delhi, India
The latest comments by Chidambaram come as finance minister Sitharaman unveiled two tranches of Rs 20 lakh crore stimulus package aimed at reviving the economy.
The latest comments by Chidambaram come as finance minister Sitharaman unveiled two tranches of Rs 20 lakh crore stimulus package aimed at reviving the economy.(HT file photo| Rahul Raut)

Former finance minister P Chidambaram on Friday took a jibe at successor Nirmala Sitharaman and her ministerial colleague Nitin Gadkari for solutions they have proposed for the problems of micro, small and medium enterprises (MSMEs).

“Minister Gadkari says that governments and PSUs owe Rs 5 lakh crore as unpaid dues to MSMEs” he tweeted.

Gadkari, the Union minister for MSMEs and road transport and highways, had said government agencies are yet to clear dues to such enterprises amounting to more than Rs 5 lakh crore.

Noting that the MSME sector is on the verge of collapse, Gadkari also urged major industries to release outstanding dues to such firms within a month. “The position of MSMEs is worst as they are now engaged in a battle for their survival,” he added.

He also said pendency of dues owed to MSMEs by the Centre, state governments, public sector undertakings and major industries is very high.

Chidambaram said in another tweet: “Minister Sitharaman says she will offer collateral free loan of Rs 3 lakh crore to MSMEs (numbering 45 lakhs).”

In the first tranche of a stimulus package on Wednesday, Sitharaman had announced that Rs 3 lakh crore in collateral-free automatic loans for businesses, including MSMEs, will be provided to meet operational liabilities, buy raw materials and restart operations.

Chidambaram asked, “So, who is the lender and who is the borrower? Will the two ministers ‘settle their accounts’ first and let MSMEs save themselves without government’s ‘help’?”

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