Lok Sabha Question No. 886 (UNSTARRED), answered on 2020-09-17
Subject: Delay in Payment to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Pratima Bhoumik

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK  SABHA UNSTARRED QUESTION  NO. 886

TO BE ANSWERED ON 17.09.2020

## DELAY IN PAYMENT TO MSMEs

## 886.     MS. PRATIMA BHOUMIK:

Will the Minister of Micro, Small and Medium Enterprises be pleased to state ;

- (a) whether as per MSME act, there is a timeline of 45 days to make payment to MSMEs and if so, the details thereof;
- (b) whether  the  Government  has  registered  cases  on  MSME  SAMADHAAN-Delayed Payment Monitoring System for delay in payment by State/UT Governments with regard to delay in payments to the MSMEs, if so, the details thereof, State/UT -wise during last three years and the action taken by the Government in this regard; and
- (c) whether  the  Government  has  issued  any  notice/notices  to  State/UT  Governments  for release  of  payment  to  MSMEs  within  45  days,  if  so  the  details  thereof  and  if  not,  the  reason therefor?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

(a): The  provision as per Section 15 of The  Micro, Small and Medium  Enterprises Development Act, 2006 (MSMED Act,2006) relating to delayed payment is as follows:

Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day:

Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.

- (b): The Government of India does not register cases on the MSME Samadhaan portal. The cases on this online portal are filed by the Micro and Small Enterprises (MSEs). Once a case is filed by the MSE, a notice by email is immediately and automatically generated and sent to the buyer and supplier as well with directions to the buyer to pay the dues within 15 days. After 15 days, the MSEFC can register the case and start proceedings as per the provisions of the MSMED Act, 2006. The details of cases filed by the MSEs on the portal State/UT wise during the last three years is enclosed  at Annexure.
- (c): For release of payment to MSMEs, this Ministry has written to the Chief Secretaries of all States /UTs on 11 th June, 2020, 4 th August, 2020  and 20 th August, 2020 with the suggestion for release of payments to the MSMEs immediately.

******

Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No. 886 for answer on 17.09.2020.

## Ministry of Micro, Small & Medium Enterprises

MSME SAMADHAAN - Delayed Payment Monitoring Portal - State wise Report

https://samadhaan.msme.gov.in  Date of Report: - 10/09/2020 02:45 PM

## Report Related to Financial Year Report State wise Report From 01/04/2017  to  31/03/2018:-

|   Sr/No. | State          |   Applications filed by MSEs |   Visible to Council after 15 days |   Converted into Case by MSEFC Council |   Disposed by MSEFC Council |   Reject by MSEFC Council |   Applications Pending* |   Mutually Settled with Respondent |
|----------|----------------|------------------------------|------------------------------------|----------------------------------------|-----------------------------|---------------------------|-------------------------|------------------------------------|
|        1 | MAHARASHTRA    |                         1226 |                                  1 |                                    204 |                         300 |                       680 |                       0 |                                 41 |
|        2 | DELHI          |                          326 |                                 53 |                                    150 |                          79 |                         3 |                       0 |                                 41 |
|        3 | TAMIL NADU     |                          303 |                                 34 |                                     50 |                         113 |                        82 |                       0 |                                 24 |
|        4 | HARYANA        |                          301 |                                 93 |                                      9 |                         137 |                         0 |                       0 |                                 62 |
|        5 | GUJARAT        |                          293 |                                  0 |                                    221 |                          56 |                         0 |                       0 |                                 16 |
|        6 | KARNATAKA      |                          285 |                                 44 |                                     41 |                          74 |                        94 |                       0 |                                 32 |
|        7 | TELANGANA      |                          261 |                                111 |                                     64 |                          15 |                        41 |                       0 |                                 30 |
|        8 | WEST BENGAL    |                          253 |                                 29 |                                    168 |                          38 |                         6 |                       0 |                                 12 |
|        9 | UTTAR PRADESH  |                          242 |                                  0 |                                     23 |                          16 |                       164 |                       0 |                                 39 |
|       10 | RAJASTHAN      |                          225 |                                  0 |                                    143 |                          70 |                         2 |                       0 |                                 10 |
|       11 | ODISHA         |                          126 |                                  0 |                                    119 |                           2 |                         2 |                       0 |                                  3 |
|       12 | MADHYA PRADESH |                          117 |                                 92 |                                      0 |                           0 |                         0 |                       0 |                                 25 |
|       13 | UTTARAKHAND    |                           89 |                                  9 |                                      1 |                          17 |                        62 |                       0 |                                  0 |
|       14 | CHHATTISGARH   |                           77 |                                  0 |                                     21 |                           4 |                        52 |                       0 |                                  0 |
|       15 | JHARKHAND      |                           70 |                                  0 |                                      4 |                          19 |                        47 |                       0 |                                  0 |
|       16 | PUNJAB         |                           69 |                                  0 |                                     45 |                           5 |                        13 |                       0 |                                  6 |
|       17 | KERALA         |                           61 |                                  0 |                                     26 |                          28 |                         2 |                       0 |                                  5 |

## Annexure

|   Sr/No. | State                      |   Applications filed by MSEs |   Visible to Council after 15 days |   Converted into Case by MSEFC Council |   Disposed by MSEFC Council |   Reject by MSEFC Council |   Applications Pending* |   Mutually Settled with Respondent |
|----------|----------------------------|------------------------------|------------------------------------|----------------------------------------|-----------------------------|---------------------------|-------------------------|------------------------------------|
|       18 | GOA                        |                           44 |                                  0 |                                      5 |                           7 |                        31 |                       0 |                                  1 |
|       19 | ANDHRA PRADESH             |                           29 |                                 11 |                                      6 |                           2 |                         4 |                       0 |                                  6 |
|       20 | DAMAN AND DIU              |                           28 |                                  1 |                                      0 |                           0 |                        25 |                       0 |                                  2 |
|       21 | HIMACHAL PRADESH           |                           26 |                                 24 |                                      0 |                           0 |                         0 |                       0 |                                  2 |
|       22 | JAMMU AND KASHMIR          |                           12 |                                  6 |                                      2 |                           4 |                         0 |                       0 |                                  0 |
|       23 | CHANDIGARH                 |                            9 |                                  7 |                                      1 |                           1 |                         0 |                       0 |                                  0 |
|       24 | BIHAR                      |                            9 |                                  8 |                                      0 |                           0 |                         0 |                       0 |                                  1 |
|       25 | ASSAM                      |                            4 |                                  4 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       26 | DADRA AND NAGAR HAVELI     |                            3 |                                  0 |                                      0 |                           3 |                         0 |                       0 |                                  0 |
|       27 | MEGHALAYA                  |                            1 |                                  1 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       28 | LAKSHADWEEP                |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       29 | PUDUCHERRY                 |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       30 | ANDAMANAND NICOBAR ISLANDS |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       31 | SIKKIM                     |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       32 | ARUNACHAL PRADESH          |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       33 | NAGALAND                   |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       34 | MANIPUR                    |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       35 | MIZORAM                    |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       36 | TRIPURA                    |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |

| Sr/No.   | State   |   Applications filed by MSEs |   Visible to Council after 15 days |   Converted into Case by MSEFC Council |   Disposed by MSEFC Council |   Reject by MSEFC Council |   Applications Pending* |   Mutually Settled with Respondent |
|----------|---------|------------------------------|------------------------------------|----------------------------------------|-----------------------------|---------------------------|-------------------------|------------------------------------|
| 37       | LADAKH  |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|          | Total   |                         4489 |                                528 |                                   1303 |                         990 |                      1310 |                       0 |                                358 |

Application pending means application has been received in last 15 days and can be mutually settled without MSEFC intervention.

State wise Report From 01/04/2018  to  31/03/2019:-

|   Sr/No. | State          |   Applications filed by MSEs |   Visible to Council after 15 days |   Converted into Case by MSEFC Council |   Disposed by MSEFC Council |   Reject by MSEFC Council |   Applications Pending* |   Mutually Settled with Respondent |
|----------|----------------|------------------------------|------------------------------------|----------------------------------------|-----------------------------|---------------------------|-------------------------|------------------------------------|
|        1 | MAHARASHTRA    |                         2605 |                                 18 |                                    891 |                         374 |                      1189 |                       0 |                                133 |
|        2 | GUJARAT        |                          945 |                                  0 |                                    626 |                         254 |                         4 |                       0 |                                 61 |
|        3 | TAMIL NADU     |                          871 |                                213 |                                    112 |                         225 |                       252 |                       0 |                                 69 |
|        4 | HARYANA        |                          809 |                                267 |                                     41 |                         427 |                         0 |                       0 |                                 74 |
|        5 | RAJASTHAN      |                          799 |                                  0 |                                    558 |                         107 |                         0 |                       0 |                                134 |
|        6 | DELHI          |                          713 |                                539 |                                     45 |                           5 |                         0 |                       0 |                                124 |
|        7 | KARNATAKA      |                          680 |                                222 |                                    173 |                         143 |                        82 |                       0 |                                 60 |
|        8 | UTTAR PRADESH  |                          572 |                                  3 |                                     95 |                          36 |                       315 |                       0 |                                123 |
|        9 | CHHATTISGARH   |                          391 |                                  0 |                                     88 |                           7 |                       289 |                       0 |                                  7 |
|       10 | WEST BENGAL    |                          373 |                                 74 |                                    184 |                          26 |                        27 |                       0 |                                 62 |
|       11 | TELANGANA      |                          303 |                                175 |                                     28 |                          33 |                        36 |                       0 |                                 31 |
|       12 | PUNJAB         |                          211 |                                 30 |                                    131 |                           1 |                        39 |                       0 |                                 10 |
|       13 | MADHYA PRADESH |                          161 |                                145 |                                      0 |                           0 |                         0 |                       0 |                                 16 |
|       14 | UTTARAKHAND    |                          151 |                                  7 |                                     46 |                          49 |                        42 |                       0 |                                  7 |

|   Sr/No. | State                      |   Applications filed by MSEs |   Visible to Council after 15 days |   Converted into Case by MSEFC Council |   Disposed by MSEFC Council |   Reject by MSEFC Council |   Applications Pending* |   Mutually Settled with Respondent |
|----------|----------------------------|------------------------------|------------------------------------|----------------------------------------|-----------------------------|---------------------------|-------------------------|------------------------------------|
|       15 | KERALA                     |                          144 |                                  0 |                                     75 |                          34 |                         7 |                       0 |                                 28 |
|       16 | ODISHA                     |                           89 |                                  0 |                                     72 |                          10 |                         0 |                       0 |                                  7 |
|       17 | JHARKHAND                  |                           78 |                                  1 |                                     34 |                          19 |                        16 |                       0 |                                  8 |
|       18 | CHANDIGARH                 |                           55 |                                 13 |                                     33 |                           6 |                         0 |                       0 |                                  3 |
|       19 | ANDHRA PRADESH             |                           46 |                                 28 |                                     11 |                           0 |                         3 |                       0 |                                  4 |
|       20 | HIMACHAL PRADESH           |                           43 |                                 36 |                                      0 |                           0 |                         0 |                       0 |                                  7 |
|       21 | DAMAN AND DIU              |                           31 |                                  2 |                                     13 |                           3 |                        10 |                       0 |                                  3 |
|       22 | GOA                        |                           27 |                                  0 |                                     10 |                          10 |                         4 |                       0 |                                  3 |
|       23 | BIHAR                      |                           18 |                                 16 |                                      0 |                           0 |                         0 |                       0 |                                  2 |
|       24 | DADRA AND NAGAR HAVELI     |                           11 |                                  2 |                                      0 |                           5 |                         0 |                       0 |                                  4 |
|       25 | JAMMU AND KASHMIR          |                            7 |                                  2 |                                      1 |                           1 |                         0 |                       0 |                                  3 |
|       26 | PUDUCHERRY                 |                            6 |                                  6 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       27 | ASSAM                      |                            3 |                                  3 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       28 | ANDAMANAND NICOBAR ISLANDS |                            2 |                                  2 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       29 | TRIPURA                    |                            1 |                                  1 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       30 | MEGHALAYA                  |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       31 | SIKKIM                     |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       32 | ARUNACHAL PRADESH          |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       33 | NAGALAND                   |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       34 | MANIPUR                    |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       35 | MIZORAM                    |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |

| Sr/No.   | State       |   Applications filed by MSEs |   Visible to Council after 15 days |   Converted into Case by MSEFC Council |   Disposed by MSEFC Council |   Reject by MSEFC Council |   Applications Pending* |   Mutually Settled with Respondent |
|----------|-------------|------------------------------|------------------------------------|----------------------------------------|-----------------------------|---------------------------|-------------------------|------------------------------------|
| 36       | LAKSHADWEEP |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
| 37       | LADAKH      |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|          | Total       |                        10145 |                               1805 |                                   3267 |                        1775 |                      2315 |                       0 |                                983 |

*Application pending means application has been received in last 15 days and can be mutually settled without MSEFC intervention.

State wise Report From 01/04/2019  to  31/03/2020:-

|   Sr/No. | State          |   Applications filed by MSEs |   Visible to Council after 15 days |   Converted into Case by MSEFC Council |   Disposed by MSEFC Council |   Reject by MSEFC Council |   Applications Pending* |   Mutually Settled with Respondent |
|----------|----------------|------------------------------|------------------------------------|----------------------------------------|-----------------------------|---------------------------|-------------------------|------------------------------------|
|        1 | MAHARASHTRA    |                         6600 |                                421 |                                   2208 |                         326 |                      3074 |                       0 |                                571 |
|        2 | DELHI          |                         2317 |                               1921 |                                     36 |                           0 |                         0 |                       0 |                                360 |
|        3 | GUJARAT        |                         2026 |                                  0 |                                   1780 |                         101 |                         1 |                       0 |                                144 |
|        4 | HARYANA        |                         1903 |                               1003 |                                    425 |                         300 |                         0 |                       0 |                                175 |
|        5 | UTTAR PRADESH  |                         1811 |                                423 |                                    382 |                          56 |                       742 |                       0 |                                208 |
|        6 | KARNATAKA      |                         1760 |                               1082 |                                    454 |                          27 |                        15 |                       0 |                                182 |
|        7 | TAMIL NADU     |                         1634 |                                598 |                                    297 |                          94 |                       496 |                       0 |                                149 |
|        8 | RAJASTHAN      |                         1416 |                               1098 |                                    106 |                           9 |                         2 |                       0 |                                201 |
|        9 | PUNJAB         |                         1107 |                                810 |                                     94 |                           3 |                       150 |                       0 |                                 50 |
|       10 | WEST BENGAL    |                          866 |                                534 |                                    223 |                           3 |                        14 |                       0 |                                 92 |
|       11 | TELANGANA      |                          520 |                                278 |                                    118 |                          10 |                        71 |                       0 |                                 43 |
|       12 | MADHYA PRADESH |                          397 |                                365 |                                      0 |                           0 |                         0 |                       0 |                                 32 |
|       13 | CHHATTISGARH   |                          346 |                                  3 |                                     94 |                           0 |                       219 |                       0 |                                 30 |
|       14 | UTTARAKHAND    |                          306 |                                207 |                                     58 |                           2 |                        33 |                       0 |                                  6 |

|   Sr/No. | State                      |   Applications filed by MSEs |   Visible to Council after 15 days |   Converted into Case by MSEFC Council |   Disposed by MSEFC Council |   Reject by MSEFC Council |   Applications Pending* |   Mutually Settled with Respondent |
|----------|----------------------------|------------------------------|------------------------------------|----------------------------------------|-----------------------------|---------------------------|-------------------------|------------------------------------|
|       15 | KERALA                     |                          292 |                                124 |                                     74 |                          55 |                         0 |                       0 |                                 39 |
|       16 | ODISHA                     |                          208 |                                 36 |                                    139 |                          11 |                         0 |                       0 |                                 22 |
|       17 | CHANDIGARH                 |                          145 |                                 85 |                                     50 |                           0 |                         0 |                       0 |                                 10 |
|       18 | ANDHRA PRADESH             |                          134 |                                120 |                                      6 |                           0 |                         0 |                       0 |                                  8 |
|       19 | HIMACHAL PRADESH           |                          116 |                                110 |                                      0 |                           0 |                         0 |                       0 |                                  6 |
|       20 | GOA                        |                          104 |                                  2 |                                     60 |                          26 |                        13 |                       0 |                                  3 |
|       21 | DAMAN AND DIU              |                          101 |                                 65 |                                      1 |                           0 |                        23 |                       0 |                                 12 |
|       22 | JHARKHAND                  |                           97 |                                 41 |                                     26 |                          12 |                        10 |                       0 |                                  8 |
|       23 | BIHAR                      |                           82 |                                 70 |                                      0 |                           0 |                         0 |                       0 |                                 12 |
|       24 | DADRA AND NAGAR HAVELI     |                           69 |                                 54 |                                      0 |                           0 |                         0 |                       0 |                                 15 |
|       25 | ASSAM                      |                           48 |                                 45 |                                      0 |                           0 |                         0 |                       0 |                                  3 |
|       26 | MEGHALAYA                  |                           35 |                                  2 |                                      1 |                          26 |                         0 |                       0 |                                  6 |
|       27 | JAMMU AND KASHMIR          |                           31 |                                 13 |                                     11 |                           7 |                         0 |                       0 |                                  0 |
|       28 | ANDAMANAND NICOBAR ISLANDS |                           31 |                                  4 |                                      0 |                           0 |                        22 |                       0 |                                  5 |
|       29 | PUDUCHERRY                 |                           16 |                                 14 |                                      0 |                           0 |                         0 |                       0 |                                  2 |
|       30 | TRIPURA                    |                            1 |                                  1 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       31 | SIKKIM                     |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       32 | ARUNACHAL PRADESH          |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       33 | NAGALAND                   |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       34 | MANIPUR                    |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       35 | MIZORAM                    |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|       36 | LAKSHADWEEP                |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |

| Sr/No.   | State   |   Applications filed by MSEs |   Visible to Council after 15 days |   Converted into Case by MSEFC Council |   Disposed by MSEFC Council |   Reject by MSEFC Council |   Applications Pending* |   Mutually Settled with Respondent |
|----------|---------|------------------------------|------------------------------------|----------------------------------------|-----------------------------|---------------------------|-------------------------|------------------------------------|
| 37       | LADAKH  |                            0 |                                  0 |                                      0 |                           0 |                         0 |                       0 |                                  0 |
|          | Total   |                        24519 |                               9529 |                                   6643 |                        1068 |                      4885 |                       0 |                               2394 |

*Application pending means application has been received in last 15 days and can be mutually settled without MSEFC intervention.