Lok Sabha Question No. 803 (UNSTARRED), answered on 2023-12-07
Subject: Pending Payments of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Jagdambika Pal

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

## LOK SABHA UNSTARRED QUESTION NO. 803 TO BE ANSWERED ON. 07.12.2023

## PENDING PAYMENTS OF MSMEs

## 803. SHRI JAGDAMBIKA PAL:

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

- (a) the  details  of  pending  MSME  payments  with  the  Government,  including  the  total  amount involved and the average duration of these payments have been outstanding;
- (b) the  measures  being  taken  by  the  Government  to  reduce  the  backlog  of  pending  MSME payments  with  the  Government  and  ensure  timely  disbursement  of  funds  to  Micro  and  Small Enterprises; and
- (c) the details of breakdown of the types of the Government entities or departments responsible for the highest number of pending MSME payments along with the corresponding amounts?

## ANSWER

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

- (a): Ministry of Micro, Small & Medium Enterprises (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 Micro & Small Enterprises (MSEs) from the buyers  of  goods  and  services  on  30.10.2017.  The  applications  regarding  outstanding  dues  are  filed before the Micro, Small Enterprise Facilitation Councils (MSEFCs). As per the information available on  the  Samadhaan  Portal,  the  no.  of    pending  applications/cases  filed  against  the  Government (Including  Central  Ministries,  Central  PSEs,  State  Government  &  State  PSEs)  from  30.10.2017  to 04.12.2023 are 9,589 and the total amount involved in these applications is Rs. 8,069.7 crore.
- (b): The steps taken by Government to reduce the backlog of pending MSME payments with the Government and ensure timely disbursement of funds to MSEs are as follows:-
-  Under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act,  2006,  MSEFCs have been set up in the States/UTs to deal with the cases of delayed payments of the MSEs.
-  The Ministry of MSME launched a portal viz. Samadhaan Portal for filing of grievances and 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  MSEFCs  for  quicker disposal of cases related to delayed payments. So far, 157 MSEFCs have been set up with more than one MSEFC set up in States like Delhi, Gujarat, Jammu & Kashmir, Karnataka, Kerala, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana, U.P. & West Bengal.

-  The  Ministry  of  MSME  has  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 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 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.
-  Under Section 43B of Income Tax Act: Deduction has been allowed for expenditure incurred on payments only when payment is actually made to MSMEs.
- (c): The  Government  entities  (Including  Central  Ministries,  Central  PSEs,  State  Government  & State  PSEs)  responsible  for  the  highest  number  of  pending  MSME  payments  along  with  the corresponding amounts from 30.10.2017 to 04.12.2023 are as below :-

| Sr. no.   | Government Entities (Including Central Ministries, Central PSEs, State Governments &State PSEs).   | No. of pending applications +cases   | Amount Involved (Rs. in crore)   |
|-----------|----------------------------------------------------------------------------------------------------|--------------------------------------|----------------------------------|
| 1         | State Governments                                                                                  | 4,392                                | 3,379.04                         |
| 2         | Central Ministries                                                                                 | 1,856                                | 904.16                           |
| 3         | Central PSEs                                                                                       | 1,853                                | 2,142.97                         |
| 4         | State PSEs                                                                                         | 1,488                                | 1,643.53                         |
| Total     | Total                                                                                              | 9,589                                | 8,069.7                          |

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