Railway Ministry Top Delayer Of MSME Payments

New Delhi, Aug 28 (KNN) The Ministry of Railways has emerged as the central ministry with the highest amount pending in delayed payments to micro and small enterprises (MSEs), according to data from the government's MSME Samadhaan portal.

As of the latest report, the Railways Ministry owes Rs 83.55 crore across 100 applications and cases.

Among railway public sector units (PSUs), Rail Vikas Nigam leads with Rs 23.87 crore pending, followed by Container Corporation of India, IRCON International and Railtel Corporation India.

The Ministry of Space ranks second overall, with Rs 75.40 crore pending across 16 applications and cases. Other ministries with significant pending amounts include Information and Broadcasting, Electronics and Information Technology and Road Transport and Highways.

In total, central ministries owe Rs 284.60 crore across 437 applications and cases combined.

The MSME Development Act 2006 mandates that buyers pay compound interest at three times the bank rate for payments delayed beyond 45 days.

Additionally, recent amendments to the Income Tax Act allow buyers to claim expenses on MSE invoices only if paid within 45 days or in the year of actual payment.

MSE Facilitation Councils (MSEFC) process applications filed by MSEs against delayed payments, issuing directions to buyers for payment of due amounts with interest.

In light of these challenges, the Reserve Bank of India's deputy governor, Swaminathan J, recently urged banks to implement supportive measures for MSEs facing delayed payments, including restructuring options, grace periods, and tailored repayment plans.

This situation highlights the ongoing financial pressures faced by micro and small enterprises in India, particularly in their interactions with government entities and large public sector undertakings.

(KNN Bureau)