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Several measures have been taken to ensure timely payments

Several measures have been taken to ensure timely payments

Several Measures have been taken to ensure timely Payments towards Micro, Small & Medium Enterprises

The Union Government had taken many steps in a view to making certain the timely payments to Micro, Small and Medium Enterprises (MSMEs) as well as towards preventing their accounts from being considered and treated as Non-Performing Assets (NPAs). As per the provisions of the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006, 60 Micro & Small Enterprises Facilitation Councils (MSEFCs) were established in the States and Union Territories for the resolution of the matters relating to delayed payment by means of conciliation or arbitration.

The SAMADHAAN portal has been established by the Ministry of Micro, Small and Medium Enterprises (MSME) towards enabling Micro and Small Enterprises (MSEs) all over the nation to directly register their matters online on the portal regarding delayed payments through Central Ministries or Departments or Central Public Sector Enterprises (CPSEs) or State Governments etc.

 The Government of India had instructed that all Corporations who have a turnover of above Rs 500 crore, as well as all the CPSEs, would be required to get themselves onboard on the Trade Receivables Discounting System Platform (TReDS) with the purpose of addressing cash flow issues of MSMEs. Furthermore, the Government relating to the matters of delayed payments, had instructed that all corporations who got supplies of products or services from MSEs and whose payment go beyond 45 days from the date of deemed acceptance of the products or services according to the provision of the Act, would submit half-yearly return towards the Ministry of Corporate Affairs specifying the sum of payments due and the cause of the delay.

MSME-Development Institutes (which is under the Ministry of MSME) is situated in the States and are assisting the Committees set up through Banks for restructuring debts of the MSMEs as a result that their loans are not considered and treated as NPAs, particularly when they face such issues related to delayed payments.

What is MSME Samadhaan Portal?

The Ministry of Micro, Small & Medium Enterprises (MSME) had launched MSME Delayed Payment Portal – MSME Samadhaan for permitting micro and small entrepreneurs all over the nation to directly register their matters concerning the delayed payments by Central Ministries/Departments/CPSEs/State Governments.

MSMED Act 2006

Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 comprises clauses towards dealing with the matters of delayed payment to Micro and Small Enterprises (MSEs). According to the provisions, the buyer is responsible towards pay compound interest with monthly interests towards the supplier on the sum at three times of the bank rate notified through Reserve Bank if he doesn’t make payment towards the supplier for the supplies of products or services within 45 days of the day of acceptance of the products or service or the deemed day of acceptance.

State Governments are to set up Micro and Small Enterprise Facilitation Council (MSEFC) for settlement of issues concerning to matter of getting references/filing on Delayed payments as per Section 20 and 21 pf the Act. Any Micro or small enterprise who has a valid Udyog Aadhar (UAM) could apply. MSEFC of the State after inspecting the matters filed by the MSE unit would issue directions towards the buyer unit for payment of amount sum along with interest in accordance with the provisions under the MSMED Act 2006. All the references made towards MSEFC would be decided within a period of 90 days from the date of making such a reference according to provisions stated in the Act.

The provisions under the Act are applied by MSEFC which is chaired by Director of Industries of the State /UT who has administrative control of the MSE units.

MSME Samadhaan Portal

Also, an initiative has been taken by the Ministry of MSME relating to the filing online application through the supplier MSE unit against the buyer of products or services before the concerned MSEFC of his/her State/UT. These shall be seen by MSEFC Council for their activities. These would also be visible towards the Concerned Central Ministries, Departments, CPSEs, State Government, etc for pro-active activities.

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Author:

eStartIndia Team



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