Lok Sabha Question No. 262 (UNSTARRED), answered on 2022-12-08
Subject: Samadhaan Platform
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Vishnu Dutt Sharma, Vinod Chavda

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK  SABHA UNSTARRED QUESTION NO. 262 TO BE ANSWERED ON.  08.12.2022

## SAMADHAAN PLATFORM

## 262.          SHRI VISHNU DATT SHARMA: SHRI VINOD L. CHAVDA:

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

- (a) whether a large number of cases are pending before the dispute resolution platform 'MSME Samadhaan' and if so, the details thereof;
- (b) whether the actual resolution rate of the cases is poor and if so, the details thereof;
- (c) whether  no  adequate  manpower  has  been  allocated  for  review  and  adjudication  for resolution of cases; and
- (d) if so, measures being taken to resolve the said issues?

## ANSWER

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

(a) to (c): Micro and Small Enterprises (MSEs) can file applications in Micro and Small Enterprise  Facilitation  Councils  (MSEFCs)  for  delayed  payments.  After  the  application  is admitted  by  the  MSEFCs,  it  becomes  a  case.  The  details  of  applications/cases  filed  on SAMADHAAN Portal from 30.10.2017(launch date) to 05.12.2022 are as follows :-

| The data as on 05.12.2022 as below:                                                          | No. of Applications/Cases   | Amount involved(in Rs. Crore)   |
|----------------------------------------------------------------------------------------------|-----------------------------|---------------------------------|
| 1. Applications filed by MSEs (2+3+4+5+6)                                                    | 1,28,338                    | 32,674.5                        |
| 2. Applications mutually settled.                                                            | 12,285 (9.6%)               | 1,657.04 (5.1%)                 |
| 3. Applications yet to be viewed by Micro &Small Enterprises Facilitation Councils (MSEFCs). | 32,123 (25%)                | 6,823.42 (20.9%)                |
| 4. Applications rejected by MSEFCs.                                                          | 30,638 (23.9 %)             | 6,277.1 (19.2%)                 |
| 5. Cases disposed by MSEFCs.                                                                 | 21,360 (16.6%)              | 6,537.11 (20%)                  |
| 6. Cases currently under consideration by MSEFCs.                                            | 31,932 (24.9%)              | 11,379.84 (34.8%)               |

: 2 :

As per the Section  21  (1)  of  the  Micro,  Small  &  Medium  Enterprise  Development Act,  2006  (MSMED  Act,  2006),  the  Micro  and  Small  Enterprises  Facilitation  Council (MSEFC) shall consist of not less than three but not more than five members.

## (d): Steps taken by the Government to resolve the said issues 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. 1,65,034.09 crore have been paid to MSME vendors by Government Ministries/  Departments/CPSEs  from  May  2020  till  05 th December, 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.
-  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  is  regularly  following  up  with  the  State  Governments  &  UTs  for timely disposal of such cases.

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