Credit and Finance for MSMEs: 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.
Credit deployment to services MSEs in August 2020 stood at Rs 7.49 lakh crore.
Credit and Finance for MSMEs: MSME dues pending by various ministries and central public sector enterprises (CPSEs) declined by Rs 135.14 crore to Rs 834.05 in August 2020 from Rs 969.19 crore in July 2020, according to the government data. As on September 15, 2020, 24 ministries and 86 CPSEs reported Rs 3,770.04 crore total dues in August out of which Rs 2,936.08 crore dues were paid in the same month, according to the data shared MoS MSME Ministry Pratap Chandra Sarangi in the Rajya Sabha. In comparison, the total dues in July and the amount cleared to MSMEs were Rs 4,124.34 crore and Rs 3,155.16 crore respectively.
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.