The amount stuck in delayed payment applications filed by micro and small enterprises (MSEs) has hit Rs 40,000 crore. Since the launch of the delayed payment monitoring platform MSME Samadhaan by the government in October 2017, 1.70 lakh applications have been filed to recover Rs 40,004 crore from government departments, public sector enterprises and other buyers of goods and services from MSEs.
As per data from the platform, out of the total amount due, only 14.7 per cent – Rs 5,896 crore has been recovered across 33,707 cases disposed, as of Monday. On the other hand, 44,420 applications involving Rs 8,904 crore have been rejected so far while 15,894 applications amounting to Rs 1,995 crore have been mutually settled. Others are either yet to be considered or currently under consideration for resolution by MSE facilitation councils.
Central public sector enterprises (CPSEs) were among the biggest defaulters till 2023-end. As of December 26, 6,167 complaints were filed by MSEs against various CPSEs. As per the data, 2,120 applications have been filed since October 2017 against Bharat Sanchar Nigam Limited (BSNL), of which only 880 were disposed. Others in the top five bracket were Indian Oil Corporation with 509 applications filed and 53 disposed followed by Bharat Heavy Electricals (455 applications and 100 disposed), Bridge & Roof Co. (India) (211 applications and 47 disposed), and NTPC (164 applications and 19 disposed).
However, proprietorship businesses, MSME units and state governments, not central PSUs or departments, were the top defaulters. As per the data from the Samadhaan portal, 40,730 applications were filed till last year-end against proprietorships that didn’t pay MSEs on time, of which 6,462 applications were disposed.
To curb the delayed payment menace, the government had allowed deduction to buyers under Section 43B of the Income Tax Act for expenditure incurred on payments only when payment is actually made to MSMEs.