Union minister Nitin Gadkari on Friday proposed a ₹1 lakh crore government-backed fund to clear dues of micro, small and medium enterprises ( MSMEs ) and help them stay afloat through the crisis caused by Covid-19 outbreak in the country.“We will ready a ₹1 lakh crore fund, which will be insured by the government. Against this fund, delayed payments can be released by the banks,” Gadkari, minister for road transport and highways and MSMEs, said in an interaction with members of Associated of Chambers of Commerce in India ( Assocham ) on Friday.“This will be a mobile fund , and will provide much needed relief to small industries,” Gadkari said.The government is yet to work on a formula to arrive at the funding mechanism, officials aware of the matter said.“Payment to MSMEs is an issue which is really bothering the government. One of the ideas that has been floated is to create a revolving fund to handle this issue,” a government official told ET.Responding to questions about a ‘relief package’ for MSMEs, Gadkari said that the ₹1 lakh crore fund will help, but it is possible to mobilise it only with the approval of the finance ministry and the Union Cabinet.“The ₹1 lakh crore package is not in my hands. I am ready to insure ₹1,500 crore for the fund. But only after the finance ministry’s approval will it go to the Cabinet. Otherwise there will be difficulty in pushing the scheme ahead,” he said.Maintaining that industries that have been opened up should adhere to social distancing norms at all costs, Gadkari added that the government was looking to restore economic activity in all areas that have so far remained unscathed by the outbreak of coronavirus.