Govt portal helps settle some delayed MSME payments; rate of disposed cases remain low
The portal has facilitated the disposal of 3,145 cases so far out of 13,091 cases filed in the past around 30 months in the MSE Facilitation Council.
Parul April 28, 2020
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As per news reports, Samadhaan portal which fastracks settlement of MSME dues by central ministries, departments, central public sector enterprises and governments, has only settled 24 per cent of the number of cases.
According to the data available on the monitoring platform, the portal has facilitated the disposal of 3,145 cases so far out of 13,091 cases filed in the past around 30 months in the MSE Facilitation Council. The buyers are currently mandated to make payments to suppliers within 45 days of the acceptance of goods or services.
As per reports, in case of failure of payments, every case filed in the facilitation council “shall be decided within a period of 90 days from the date of making such a reference.” The amount payable in the number of cases filed stood at Rs 4,112 crore while Rs 598 crore has been settled through the disposed of cases. Delay payments from buyers have been among the major challenges faced by MSMEs leading to cash flow problems.
As per reports, the World Association for Small and Medium Enterprises (WASME) had recently written to the Prime Minister Narendra Modi stating that around more than 60 million MSMEs are in real danger with more than 92 per cent drop in domestic sales compared to the same time last year and requested that the delayed payments of the MSMEs should be made within 15 days
To provide some relief to small businesses, finance minister Nirmala Sitharaman had last month announced that government would bear the 24 per cent contribution of both employee and employer combined to the Employees’ Provident Fund for the coming three months.
In fact, the minister had also announced raising the default threshold by MSMEs from Rs 1 lakh to Rs 1 crore to prevent triggering of insolvency proceedings against small businesses.