Govt to set up Rs 1-trn fund to clear pending MSME payments: Gadkari

He said the proposal may be placed before the Cabinet for approval once the finance ministry gives its go-ahead

The government will set up a Rs 1 trillion fund to repay outstanding payments to MSMEs owed by the central and state government undertakings as well as major industries, Union Minister Nitin Gadkari said on Friday.

The minister said he has devised a scheme to set up the fund, and the proposal may be placed before the Cabinet for approval once the Finance Ministry gives its go-ahead.

"We have decided to set up a fund of Rs 1 trillion. We will insure this fund with the government paying the premium. We will come up with a formula for sharing of the interest