Even as the amount declined in August from the preceding month, the number of ministries and CPSEs reporting MSME dues in August was lower than the number in August. While 30 ministries and 108 CPSEs reported total dues, dues paid and pending dues in July, only 24 ministries and 86 CPSEs had reported the same in August. Moreover, in comparison to dues pending in May and June, the August dues were higher by around Rs 200-300 crore. 25 ministries and 79 CPSEs had reported Rs 561.64 crore pending dues in May while 25 ministries and 86 CPSEs had reported Rs 648.83 crore payment pending in June.
Government buyers are liable to pay MSMEs within 45 days of the acceptance of the order from MSMEs even as complaints made to MSE Facilitation Council (MSEFC) have to be decided within 90 days. Finance Minister Nirmala Sitharaman had in May asked PSUs and ministries to clear MSME dues within 45 days even as the Department of Expenditure had issued an Office Memorandum in July asking buyers to pay penal interest of 1 per cent per month for delayed payments beyond the prescribed duration.
The Ministry of MSME had earlier this month asked private buyers also to clear MSME dues “at the earliest,” as per a statement. The ministry had said that it has written e-letters to “the owners, CMDs or top executives” of the top 500 corporate groups in India to pay MSMEs on time.