Lok Sabha Question No. 3138 (UNSTARRED), answered on 2022-08-04
Subject: Pending Payment to MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. T. Sumathy (a) Thamizhachi Thangapandian

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

## LOK SABHA UNSTARRED QUESTION NO. 3138 TO BE ANSWERED ON 04.08.2022

## PENDING PAYMENT TO MSME SECTOR

3138.

DR. T. SUMATHY (a)  THAMIZHACHI THANGAPANDIAN:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Union Government is aware of the fact that huge pending payments from the  Government  PSUs  and  big  private  players  has  killed  several  thousand  companies belonging to MSME sector;
- (b) if so, the steps taken by the Government to mitigate the crisis faced by MSME sector;
- (c) the total number of companies registered as MSME or SME suffering from bad loans in the country, particularly in Tamil Nadu during the last five years; and
- (d) the various proactive measures taken by the Union Government to rehabilitate such companies to be on normal track of business?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a) &(b): The Government is aware of the pending payment issue of  Micro and Small Enterprises (MSEs) and the various steps taken by the Government to address  the issue of delayed payment to MSEs are as follows:-

-  Under  the  provisions  of  the  Micro,  Small  and  Medium  Enterprises  Development (MSMED) Act, 2006, Micro & Small Enterprises Facilitation Councils (MSEFCs) have been set up in the States/UTs to deal with cases of delayed payments of the Micro and Small Enterprises (MSEs).
-  Ministry of MSME launched SAMADHAAN Portal on 30.10.2017 (http://samadhaan.msme.gov.in/MyMSME/MSEFC/ MSEFCWelcomer.aspx.) for monitoring  of  the  outstanding  dues  to  the  MSEs  from  the  buyers  of  goods  and services.
-  The  Ministry  of  MSME  created  a  special  sub-portal  within  Samadhaan  portal  on 14.06.2020, after the Aatma Nirbhar Bharat announcements, for reporting the dues and monthly payments by central Ministries/Department/Public Sector Enterprises to MSMEs.  Dues  of  Rs.  1,32,531.05  crore  have  been  paid  to  MSME  vendors  by Government Ministries/ Departments/CPSEs from May, 2020 till 01 st August, 2022.
-  The Ministry of MSME has also been urging States/UTs to set up more number of Micro & Small Enterprises Facilitation Councils for quicker disposal of cases related to  delayed  payments.  So  far  113  MSEFCs  have  been  set  up,  with  more  than  one MSEFC having been set up in Delhi, Jammu & Kashmir, Karnataka, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana and U.P.

-  The  Government  of  India  has  also  instructed  CPSEs  and  all  companies  with  the turnover  of  Rs.  500  Crore  or  more  to  get  themselves  on-boarded  on  the  Trade Receivables Discounting System (TReDS), an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers.
-  Companies which get supplies of goods or services from Micro & Small Enterprises and whose payment to Micro and Small Enterprises exceeds 45 days from the date of acceptance or the date of deemed acceptance of the goods or services, also need to submit a half yearly return to the Ministry of Corporate Affairs stating the amount of payments due and the reasons of the delay.
-  The Ministry has taken up the subject with the Central Ministries, CPSEs and State Governments for the clearance of pending dues to MSEs. It is regularly following up with the State Governments & UTs for timely disposal of such cases.

(c): As informed by Reserve Bank of India (RBI) information on number of companies registered as MSME or SME suffering from bad loans is not maintained with RBI.

(d): The  Government  of  India  announced  a  series  of  measures  under  Aatma  Nirbhar Bharat  to  support  the  economy,  especially  the  MSME  sector.  This  inter-alia  includes  (i) Subordinate Debt for stressed MSMEs; (ii) Equity infusion through MSME Fund of Funds (SRI  Fund);  (iii)  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  for  Businesses, including  MSMEs;  (iv)  New  Definition  of  MSME  (v)  No  Global  tenders  for  Government procurements upto Rs. 200 crore (vi) Launch of Udyam Registration Portal.

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