Lok Sabha Question No. 3245 (UNSTARRED), answered on 2026-03-12
Subject: Delay in Payment to MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. Shashi Tharoor

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

## LOK SABHA UNSTARRED QUESTION NO. 3245 TO BE ANSWERED ON 12.03.2026

## DELAY IN PAYMENT TO MSMEs

## 3245.        DR. SHASHI THAROOR:

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

- (a) whether  the  Government  is  aware  of  the  problem  of  delayed  payments  to  Micro,  Small  and Medium Enterprises  (MSMEs),  including  the  estimated  amount  of  receivables  currently  outstanding and the impact of such delay on cash flows of micro and small enterprises, if so, the details thereof;
- (b) the  status  of  utilisation  and  effectiveness  of  existing  mechanisms  such  as  the  MSME Samadhaan portal and other dispute resolution forums in securing timely payments;
- (c) the uptake and outcomes of the recently launched Online Dispute Resolution (ODR) portal for delayed payment disputes, including the number of cases resolved and average resolution time; and
- (d) whether the Government proposes to introduce further reforms to ensure faster recovery of dues for MSMEs, and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): Delayed  payments  to  Micro  and  Small  Enterprises  (MSEs)  is  one  of  the  concerns  for  the viability and growth of the MSMEs and poses challenge for availability of working capital.

Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 under Section 15-23 of Chapter V mandates payment to the MSEs to be made within 45 days. Under the provisions of the 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).

The  details  of  Ministry  -wise  dues  reported  by  CPSEs  on  Samadhaan  Portal  till  the  end  of February, 2026 is given at Annexure.

For  filing  and  monitoring  pending  payment  cases  by  MSEs  against  the  buyers  of  goods  and services, Government launched SAMADHAAN Portal on 30.10.2017. The filed cases are then referred to the concerned MSEFC for resolution of dispute between the MSE seller and the buyer as per relevant provision made under the applicable laws.

- (b): As per the data available on MSME SAMADHAAN Portal, the applications filed by Micro and Small Enterprises (MSEs) are 2,56,892. Out of this, a total of 1,60,223  cases have been decided by Micro and Small Enterprise Facilitation Councils (MSEFCs). Thus, the percentage of applications filed to the cases disposed off is approximately 62%.

(c): For efficient resolution of the pending payment cases, Government has launched Online Dispute Resolution (ODR) Portal on 27.06.2025 as a digital, technology-enabled mechanism to strengthen the existing SAMADHAAN Portal, with the objective of ensuring speedy, cost-effective, and transparent resolution  of  delayed  payment  disputes  involving  MSE.  All  fresh  cases  related  to  delayed  payments filed  by  MSEs on the MSME ODR portal with effect from 15.10.2025. Till date, total 14,814 cases have been filed on this Portal, out of which 26 cases have been resolved.

(d): To address the issue of working capital, Government of India vide notification S.O. 4845(E) dated 07.11.2024 has directed CPSEs and all companies with the turnover of Rs. 250 Crore or more to on-board the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers.

In  order  to  unlock  the  potential  of  working  capital  for  MSMEs  through  the  TReDS  platforms,  the following four key measures have been announced in Budget Announcements 2026-27:

- i. Mandate TReDS as the settlement platform for all purchases from MSMEs by CPSEs, setting a benchmark for other Corporate.
- ii. Introduce  CGTMSE-backed  credit  guarantee  support  for  invoice  discounting  on  TReDS platform.
- iii. Integrate  GeM  with  TReDS  to  enable  information-sharing  with  financiers  on  government MSME purchases, facilitating faster and cheaper credit.
- iv. Introduce  TReDS  receivables  as  asset-backed  securities  to  deepen  the  secondary  market, improve liquidity, and speed up settlements.

******

## Annexure  referred  to  in  reply  to  part  (a)  of  Lok  Sabha  Unstarred  Question  No.  3245  for  answer  on 12.03.2026.

| Ministry -wise dues reported by CPSEs on Samadhaan Portal till the end of month February, 2026   | Ministry -wise dues reported by CPSEs on Samadhaan Portal till the end of month February, 2026   | Ministry -wise dues reported by CPSEs on Samadhaan Portal till the end of month February, 2026   | Ministry -wise dues reported by CPSEs on Samadhaan Portal till the end of month February, 2026   | Ministry -wise dues reported by CPSEs on Samadhaan Portal till the end of month February, 2026   |
|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
| S. No.                                                                                           | Name of Ministry                                                                                 | Cumulative dues reported towards MSMEs (in Rs. Crore.)                                           | Amount Paid reported (in Rs. Crore.)                                                             | Total Pending dues reported (in Rs. Crore.)                                                      |
| 1                                                                                                | Ministry of Petroleum and Natural Gas                                                            | 10,179.49                                                                                        | 9,308.58                                                                                         | 870.91                                                                                           |
| 2                                                                                                | Ministry of Defence                                                                              | 5,300.82                                                                                         | 5,251.81                                                                                         | 49.01                                                                                            |
| 3                                                                                                | Ministry of Power                                                                                | 1,088.88                                                                                         | 919.14                                                                                           | 169.73                                                                                           |
| 4                                                                                                | Ministry of Steel                                                                                | 1,072.37                                                                                         | 865.14                                                                                           | 207.23                                                                                           |
| 5                                                                                                | Ministry of Heavy Industries                                                                     | 1,001.9                                                                                          | 952.25                                                                                           | 49.65                                                                                            |
| 6                                                                                                | Ministry of Coal                                                                                 | 702.33                                                                                           | 306.1                                                                                            | 396.23                                                                                           |
| 7                                                                                                | Ministry of Communications                                                                       | 411.5                                                                                            | 109.33                                                                                           | 302.17                                                                                           |
| 8                                                                                                | Ministry of Atomic Energy                                                                        | 394.3                                                                                            | 360.54                                                                                           | 33.76                                                                                            |
| 9                                                                                                | Ministry of Consumer Affairs, Food and Public Distribution                                       | 233.32                                                                                           | 164.62                                                                                           | 68.71                                                                                            |
| 10                                                                                               | Ministry of Chemicals and Fertilizers                                                            | 204.74                                                                                           | 125.52                                                                                           | 79.22                                                                                            |
| 11                                                                                               | Ministry of Shipping                                                                             | 144.37                                                                                           | 102.72                                                                                           | 41.66                                                                                            |
| 12                                                                                               | Ministry of Railways                                                                             | 86.09                                                                                            | 83.04                                                                                            | 3.05                                                                                             |
| 13                                                                                               | Ministry of Tourism                                                                              | 84.22                                                                                            | 20.72                                                                                            | 63.5                                                                                             |
| 14                                                                                               | Ministry of Electronics and Information Technology                                               | 66.99                                                                                            | 40.66                                                                                            | 26.33                                                                                            |
| 15                                                                                               | Ministry of Mines                                                                                | 39.31                                                                                            | 38.65                                                                                            | 0.66                                                                                             |
| 16                                                                                               | Ministry of Social Justice and Empowerment                                                       | 30.09                                                                                            | 26.25                                                                                            | 3.84                                                                                             |
| 17                                                                                               | Ministry of Finance                                                                              | 28.55                                                                                            | 23.78                                                                                            | 4.77                                                                                             |
| 18                                                                                               | Ministry of Health and Family Welfare                                                            | 20.47                                                                                            | 11.2                                                                                             | 9.27                                                                                             |
| 19                                                                                               | Ministry of Information and Broadcasting                                                         | 16.02                                                                                            | 2.34                                                                                             | 13.68                                                                                            |
| 20                                                                                               | Ministry of Science and Technology                                                               | 11.47                                                                                            | 11.35                                                                                            | 0.13                                                                                             |
| 21                                                                                               | Ministry of Textiles                                                                             | 9.87                                                                                             | 2.14                                                                                             | 7.73                                                                                             |
| 22                                                                                               | Ministry of Commerce and Industry and Industry                                                   | 3.86                                                                                             | 3.82                                                                                             | 0.05                                                                                             |
| 23                                                                                               | Ministry of Human Resource Development                                                           | 3.31                                                                                             | 0                                                                                                | 3.31                                                                                             |
| 24                                                                                               | Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH)                | 2.2                                                                                              | 0.45                                                                                             | 1.75                                                                                             |
| 25                                                                                               | Ministry of Housing and Urban Affairs                                                            | 0.91                                                                                             | 0.91                                                                                             | 0                                                                                                |
| 26                                                                                               | Ministry of New and Renewable Energy                                                             | 0.12                                                                                             | 0.12                                                                                             | 0                                                                                                |
| 27                                                                                               | Ministry of Space                                                                                | 0.11                                                                                             | 0.11                                                                                             | 0                                                                                                |
| 28                                                                                               | Ministry of Civil Aviation                                                                       | 0.1                                                                                              | 0                                                                                                | 0.1                                                                                              |
| 29                                                                                               | Ministry of Minority Affairs                                                                     | 0.09                                                                                             | 0.09                                                                                             | 0                                                                                                |
| 30                                                                                               | Ministry of Agriculture and Farmers Welfare                                                      | 0.06                                                                                             | 0.06                                                                                             | 0                                                                                                |
| 31                                                                                               | Ministry of Micro, Small and Medium Enterprises                                                  | 0.01                                                                                             | 0                                                                                                | 0.01                                                                                             |
| 32                                                                                               | Ministry of Road Transport and Highways                                                          | 0.01                                                                                             | 0.01                                                                                             | 0                                                                                                |
|                                                                                                  | Grand Total                                                                                      | 21,137.88                                                                                        | 18,731.45                                                                                        | 2,406.46                                                                                         |