Credit and Finance for MSMEs: The amount involved in disposed cases by MSEFCs so far stood at Rs 780.99 crore out of Rs 17,202.18 crore involved in the total applications filed.
MSMEs in India have had a tumultuous year of subdued economic activity coupled with skyrocketing trade costs.
Credit and Finance for MSMEs: The number of micro and small enterprises’ (MSEs) delayed payment applications disposed by the micro and small enterprise facilitation councils (MSEFC) has jumped 187 per cent in around past 12 months. From 1,528 applications disposed as of October 16, 2019, the number increased to 4,389 as of November 9, 2020, according to the data sourced from the MSME Samadhaan portal. The jump has also been visible in terms of the total number of applications filed by MSEs during the period. From 27,380 applications, the number has increased by 117 per cent to 59,456 applications.
“Whatever problems MSMEs are sharing on the portal, are getting solved increasingly day by day. The portal has been well received by MSMEs. We have received a positive response from MSMEs regarding the portal,” Sudhir Garg, Joint Secretary, Ministry of MSME had told Financial Express Online last year.
The amount involved in disposed cases by MSEFCs so far stood at Rs 780.99 crore out of Rs 17,202.18 crore involved in the total applications filed. MSEFCs have also rejected 10,086 applications involving Rs 2,219.89 crore. Moreover, in terms of mutually settled cases, 5,257 applications have been disposed through mutual settlement involving Rs 804.96 crore. The government had launched the MSME Samadhaan portal back in October 2017 to help small businesses with the easy filing application process and tracking them.
The MSME Ministry had recently written to more than 2,800 corporates, after writing 500 such businesses in September, to settle payments in October itself. In the preceding five months, maximum payments of Rs 3,725.60 crore to MSMEs were cleared in September. The government had recently reminded Central Public Sector Enterprises (CPSEs) and other companies mandated to join the bill discounting platform TReDS as buyers. The Finance Minister Nirmala Sitharaman had in May asked government bodies to clear dues pending to MSME within 45 days. The Department of Expenditure had also issued an Office Memorandum in July asking buyers from MSMEs to pay a penal interest of 1 per cent per month for delayed payments beyond the prescribed duration.