Stressed MSMEs will not be declared as NPAs, says FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Friday said that micro, small and medium enterprises (MSMEs) can approach any public sector bank to sort out their finances.

Speaking at the annual conference of industry body ASSOCHAM here, Sitharaman said: "We make sure that stressed MSMEs will not be declared NPAs. They can be restructured without NPAs."

"We will also ensure that they get additional term loans and additional liquidity through their working capital requirement. Between December 7 and January 7, MSMEs can approach any public sector bank and sort out their finances."

The Finance Minister also said that the government has formed a task group on infrastructure to deploy the front-ended fund of Rs 1 lakh crore for five years.

"In the budget, I had announced that Rs 1 lakh crore will be given for infrastructure. I have announced post-budget that I will make sure it will be front-loaded. We have formed the task group."

"Task Group is also looking at getting the pipeline ready so that at the earlier we clear each one of those projects. Nearly, 10 of them are ready for clearance. So these will get the money upfront," she said.

Sitharaman also said the Cabinet has approved an alternative mechanism where money will be given to incomplete housing projects.

".... For those projects which are remaining or incomplete all over the country. Homebuyers are worried they are not getting homes. Cabinet has approved an alternative mechanism where we will put money first into it and additionally we keep adding to it and investment from elsewhere is also brought in. Through opening an escrow account, those projects which are waiting to be completed shall get completed," added she.