Lok Sabha Question No. 1668 (UNSTARRED), answered on 2021-07-29
Subject: Pending Payments to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Lavu Sri Krishna Devarayalu

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK  SABHA UNSTARRED QUESTION NO.1668 TO BE ANSWERED ON 29.07.2021

## Pending Payments to MSMEs

## 1668.   SHRI LAVU SRI KRISHNA DEVARAYALU:

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

- (a) whether the Government has assessed the total pending payments to MSMEs from the Union and State Government and Public Sector Enterprises;
- (b) if so, the details thereof;
- (c) the duration for which these payments have been pending for; and
- (d) the details of the steps taken by the Government to pay these pending dues to MSMEs within stipulated time period?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI  NARAYAN RANE)

(a) to (c): Yes Sir.  As per data available on SAMADHAAN Portal, as on 26 th July, 2021 total  9,729  applications  amounting  to  Rs.  7,798.30  cr.  have  been  filed  against  Union  and State Government and Public Sector Enterprises by Micro and Small Enterprises (MSEs).

- (d): Some of the steps taken by the Government to pay these pending dues to MSMEs within the stipulated time period are as follows:-
- (i) Under  the  provisions  of  the  Micro,  Small  and  Medium  Enterprise  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  has 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.
- (ii) If  a  buyer  fails  to  make  payment  to  MSE  supplier,  there  is  a  provision  to  pay compound interest on the due amount at three times of the bank rate notified by the Reserve Bank as per section 16 of the MSMED Act, 2006.
- (iii)   A special sub-portal within SAMADHAAN portal (https://samadhaan.msme.gov.in/)  was  launched  on  14 th June,  2020.  An online reporting system developed for reporting the dues and monthly payments by GOI Ministries and CPSEs to the MSMEs. Dues of Rs. 55,863.3 crore have been paid to the MSME vendors by Government Ministries/Departments/CPSUs from 14 th May 2020 till 26 th July, 2021.
- (iv)    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 receivable of MSMEs through multiple financiers.
- (v) 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.