Lok Sabha Question No. 3515 (UNSTARRED), answered on 2023-08-10
Subject: MSME Samadhaan Portal
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ritesh Pandey, D. Ravikumar

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

## LOK SABHA UNSTARRED QUESTION NO. 3515 TO BE ANSWERED ON 10.08.2023

## MSME SAMADHAAN PORTAL

## 3515. SHRI RITESH PANDEY: SHRI RAVIKUMAR D:

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

- (a) the steps taken by the Government to prevent delay in payments to MSMEs and to support Micro, Small and Medium Enterprises (MSMEs) in receiving timely payments;
- (b) whether the Government proposes to integrate Online Dispute Resolution (ODR) mechanism into the MSME Samadhan portal to enable MSMEs to resolve their delayed payment disputes through ODR; and
- (c) whether  MSME  Facilitation  Councils  are  permitted  to  use  the  services  of  ODR  service providers to resolve the disputes of MSMEs in an efficient and expeditious manner, if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

- (a): The steps taken by Government to prevent delay in payments to Micro, Small and Medium Enterprises (MSMEs) and to support to MSMEs in receiving timely payments 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 the cases of delayed payments of the Micro and Small Enterprises (MSEs).
-  Ministry of MSME launched a portal viz. Samadhaan Portal (https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC\_Welcome.aspx) for filing of grievances & for monitoring of the outstanding dues to the MSEs from the buyers of goods and services on 30.10.2017.
-  The  Ministry  of  MSME  has  requested  States/UTs  to  set  up  more  number  of  MSEFCs  for quicker disposal of cases related to delayed payments. So far 152 MSEFCs have been set up with  more  than  one  MSEFC  set  up  in  States  like  Delhi,  Jammu  &  Kashmir,  Karnataka, Kerala, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana, U.P. & West Bengal.
-  The Ministry of MSME created a special sub-portal within Samadhaan Portal on 14.06.2020, after the AatmaNirbhar Bharat announcements, for reporting the dues and monthly payments by Central Ministries/Department/Public Sector Enterprises to MSMEs.
-  Government of India 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,  an electronic  platform  for  facilitating  the  discounting  of  trade  receivables  of  MSMEs  through multiple financiers.

-  Companies which get supplies of goods or services from MSEs and whose payment to MSEs 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.
-  Budget  2023  announcement:  Under  Section  43B  of  Income  Tax  Act:  Deduction  has  been allowed  for  expenditure  incurred  on  payments  only  when  payment  is  actually  made  to MSMEs.

(b): The  Ministry  of  MSME  implements  the  World  Bank  supported  Central  Sector  Scheme 'Raising and Accelerating MSME Performance' (RAMP). One of the Disbursement Linked Indicators under  RAMP  is  to  reduce  the  incidence  of  delayed  payments  to  MSMEs,  which  inter  alia  entails linking of Samadhaan Portal and Online Dispute Resolution Platform.

(c): Under Section (18), Chapter V of the MSMED Act, 2006, the Micro and Small  Enterprises Facilitation Council shall either itself conduct conciliation in the matter or seek the assistance of any institution or centre providing alternate dispute resolution services by making a reference to such an institution  or  centre,  for  conducting  conciliation  and,  the  provisions  of  sections  65  to  81  of  the Arbitration and Conciliation Act, 1996 shall apply to such a dispute as if the conciliation was initiated under Part III of that Act.

*******