41% higher payment made by steel CPSEs to MSMEs during April-Nov 2022 from year-ago period: Govt | The Financial Express

41% higher payment made by steel CPSEs to MSMEs during April-Nov 2022 from year-ago period: Govt

Credit and finance for MSMEs: According to the steel ministry, nearly 100 per cent payment from April-November in FY23 was made within 30 days of procurement of goods from MSMEs.

steel msmes
In November 2022, commerce minister Piyush Goyal had requested large steel players to support small steel manufacturers and exporters.

Credit and finance for MSMEs: The steel ministry on Monday in its 2022 year-end review said its central public sector enterprises (CPSEs) have made a payment of Rs 4,747.53 crore to MSMEs during the April-November period. This was 41.35 per cent higher than the payment of Rs.3358.61 crore made during the corresponding period last year, the ministry added. “The status of pending payments to MSMEs by CPSEs of the steel ministry is being monitored on weekly basis to ensure that the same is credited timely and well within the 45 days time limit for such payments.” 

According to the ministry, 98 per cent of the payment from April-November of the current fiscal were within 30 days of goods procured from MSMEs. Moreover, in terms of procurement from MSMEs via the government’s e-commerce portal Government e-Marketplace (GeM), the ministry said the purchases made by steel CPSEs increased significantly over the year with the value of orders during April-November stood at 130.39 per cent higher over April-November period in 2021.

Also read: Piyush Goyal urges large steel players to support MSME manufacturers, exporters

Within the iron and steel industry, the segment of secondary steel producers, which contributes more than 40 per cent to the production of crude steel, mostly consists of MSMEs. “The role of the secondary steel sector in infrastructure development is immense. Not only does infrastructure development provide a stimulus to steel demand but steel intensive construction also leads to rapid building up of infrastructure,” the ministry said.

Meanwhile in November this year, commerce minister Piyush Goyal had urged leading steel businesses in the country to deliberate and work out a mechanism to support MSME manufacturers and exporters.

Also read: Large steel players may face twin blows from export duty, shows CRISIL research

Goyal’s comments had come days after the government announced the withdrawal of export duty on steel and various steel products including on iron ore lumps and fines below 58 per cent FE (iron) content, iron ore pellets and the specified steel products including pig iron. The export duty, however, was a temporary measure to maintain price stability and maintain the growth momentum of the industry which has also resulted in reining in inflation, Goyal had said at an event in Delhi.

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First published on: 26-12-2022 at 19:24 IST
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