Rahul seeks cash support to MSMEs, says one-third of them closing down permanently

New Delhi [India], June 2 (ANI): Congress leader Rahul Gandhi on Tuesday asked the Central government to give micro, small and medium enterprises (MSMEs) cash support as they are on the verge of closing down permanently.

Taking to Twitter, Gandhi said: "11 crore Indians are employed by MSMEs. 1/3 of them are closing down permanently. It's criminal for GOI not to give them cash support immediately."

He was responding to a survey conducted by the All India Manufacturers' Association (AIMO) in partnership with nine other industry bodies.

According to the survey, more than one-third of the self-employed and small and medium businesses are unable to recover the huge losses that they have incurred in the past couple of years and, hence, are on the verge of closing.

The Union Cabinet on Monday approved Rs 20,000 crore subordinate debt for stressed MSMEs, which will benefit two lakh such units.

Subordinate debt is a debt owed to an unsecured creditor that in the event of liquidation can only be paid after the claims of secured creditors have been met.

Prime Minister Narendra Modi had recently announced a Rs 20 lakh crore economic stimulus package for the country fighting the coronavirus, stating that it will give a new impetus and a new direction to the self-reliant India campaign. (ANI)