Finance Minister to India Inc: Work on solutions to map migrants

While the Covid-relief package took care of the bleeding MSMEs sector, concerns of large companies, especially those in stressed sectors such as hospitality, tourism, automotive and aviation, should also be addressed to protect jobs and increase d...

Agencies
The government will push the ₹1 lakh crore National Infrastructure Pipeline and front-load projects in order to create demand and have a multiplier effect.
New Delhi: Finance minister Nirmala Sitharaman on Wednesday asked industry to reset its relations with workers, and work on solutions to map migrants. She said the government had addressed banks’ hesitation in lending to industry, particularly MSMEs, with full and partial credit guarantees.

While the Covid-relief package took care of the bleeding MSMEs sector, concerns of large companies, especially those in stressed sectors such as hospitality, tourism, automotive and aviation, should also be addressed to protect jobs and increase demand, industry members said.

Interacting with members of the Confederation of Indian Industry three days after she unveiled the fifth and final instalment of the ₹20 lakh crore package, Sitharaman put the onus on industry for engaging with labour more professionally.


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Most urban centres have seen large-scale reverse migration, as workers have returned to villages even as the government has allowed a staggered opening of economic activity. “Mindsets in industry need to set examples in handling workers in a way that is acceptable to all,” she told members of CII.

“Industry needs to reset its relations with workers and plan for labour including unskilled labour,” she said, adding that businesses could look at solutions of mapping the migrant labour gone back to their states to local employment that could be generated to increase productivity. The government trusts the industry fully and comprehensively, she said.
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The government will push the ₹1 lakh crore National Infrastructure Pipeline and front-load projects in order to create demand and have a multiplier effect, while fast-tracking the ₹90,000 crore liquidity infusion in the power sector, the minister said.

Industry sought clarity on the definition of micro, small and medium enterprises, which the government has connected to turnover. While the issue will have to be raised with the concerned ministry, Sitharaman said several levels of deliberations were conducted with the MSME ministry before the changes were proposed as part of the package.

She added that before Covid-19 as well, clear handholding was announced for MSMEs and non-banking finance companies to help enterprises in rural areas. Further credit availability for term loans and working capital loans is intended towards all MSMEs, and hence the government has provided a guarantee to banks to overcome hesitation in lending, she said. The government is open to industry feedback on any clarifications that may be required, she said.
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