Only 25% MSME applications to recover pending dues from these ministries, departments disposed so far

By: |
March 11, 2020 2:10 PM

Credit and Finance for MSMEs: Out of the applications filed, the number of central ministries and departments applications disposed of by the MSE Facilitation Council (MSEFC) was 33 and 46 -- only 6.1 per cent and 5.1 per cent respectively.

The Samadhaan portal launched on October 30, 2017, has received 37,972 applications so far across 12 respondent categories.

Credit and Finance for MSMEs: 33 central ministries and 38 central departments, against which 535 and 894 cases of delayed payments have been filed by micro and small enterprises (MSE) on the delayed payments monitoring portal MSME Samadhaan has Ministry of Railways, Department of Defence, Department of Telecommunications and Department of Health and Family Welfare receiving maximum applications. According to the data sourced from the portal, while MSEs have filed 116 applications for delayed payments against the Ministry of Railways, the cases against the three departments stood at 303, 119, 110 respectively so far. The Ministry of Electronics and Information Technology and Ministry of Atomic Energy were the other two ministries in the top three ministries’ bracket against which 58 and 53 applications have been filed respectively.

Out of the applications filed, the number of central ministries and departments applications disposed of by the MSE Facilitation Council (MSEFC) was 33 and 46 — only 6.1 per cent and 5.1 per cent respectively. In terms of the mutual settlement between the MSE and the buyer (respondent), the number of cases for central ministry and departments was 104 and 169. Overall, the share of disposed and mutually settled cases against the applications filed so far was 25.6 per cent and 24 per cent for the two respondents respectively. On the other hand, the number of rejected applications against central ministries MSEFC was 88 while for central departments the number was 110.

Also read: Women entrepreneurship: SME lender U GRO taps into women-owned small businesses; launches new scheme

The Finance Minister Nirmala Sitharaman, addressing the challenge of delayed payments for MSMEs, in her second budget speech had announced an “app-based invoice financing loans product will be launched” which will “obviate the problem of delayed payments and consequential cash flows mismatches for the MSMEs.” The minister had also asked public sector banks to restructure all the remaining MSME loan accounts and disburse all sanctioned loans by March 15. Sitharaman had told reporters after a meeting with PSU banks that 5.28 lakh MSME loan accounts have been restructured out of 5.53 lakh such accounts.

The Samadhaan portal launched on October 30, 2017, has received 37,972 applications so far across 12 respondent categories including central ministries, central departments, central PSUs, railways, state government etc. Apart from ‘other’ category against which 18,385 applications of delayed payments have been filed, the top respondents delayed MSE payments were proprietorship with 6,769 applications, state government with 3,125 applications, and MSME units with 2,559 cases.

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