2023: The biggest defaulters of MSME payments

Dec 27, 2023 Abhishek Yadav

Among various central and state buyers against which MSMEs have filed complaints for delayed payments, central public sector enterprises (CPSEs) have been among the biggest defaulters.

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As of December 26, 6,167 complaints were filed by MSEs against various CPSEs since October 2017 when Samadhaan portal was launched, of which only 1,630 applications were disposed.

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Among top five CPSEs, 2,120 applications filed since October 2017 against BSNL, 509 against IOC, Bharat Heavy Electricals (455 applications), Bridge & Roof Co. (India) (211 applications) and NTPC (164 applications).

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Other than CPSEs, the departments of various central ministries have received 2,371 applications since October 2017.

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The maximum 582 applications filed against the Department of Defence, while the Department of Health and Family Welfare had received 232 applications.

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Other top three defaulters among central departments were telecom, military affairs and higher education with 217, 184, and 166 applications filed so far by MSEs respectively.

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However, proprietorship businesses, MSME units and state governments have been the top defaulters. 40,730 applications filed so far against proprietorships, 13,639 against MSMEs, 10,129 against state governments

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Amid states, 1,414 applications filed against buyers in Rajasthan govt, 1,277 applications against UP buyers, 1,173 against Maharashtra, 859 against MP, 526 against AP.

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As of December 4, 2023, state governments were responsible for the highest number of 4,392 pending MSME payment applications amounting to Rs 3,379 crore.

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1,856 applications involving Rs 904 crore against central ministries, 1,853 applications involving Rs 2,142 crore against central PSUs and 1,488 applications involving Rs 1,643 crore against state PSUs.

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MSME Ministry has requested States/UTs to set up more MSEFCs for quicker disposal of cases related to delayed payments. So far, 157 MSEFCs have been set up with more than one MSEFC set up in multiple states.

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