New Delhi, July 24 (KNN) The Ministry of MSME has requested States/UTs to set up more number of MSEFCs for quicker disposal of cases related to delayed payments.

So far 152 MSEFCs have been set up with more than one MSEFC set up in states like Delhi, Jammu & Kashmir, Karnataka, Kerala, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana, U.P. & West Bengal.

Under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, Micro & Small Enterprises Facilitation Councils (MSEFCs) have been set up in the States/UTs to deal with cases of delayed payments of the Micro and Small Enterprises (MSEs).

Minister of State for Micro Small and Medium Enterprises, Bhanu Pratap Singh Verma shared information about the initiatives taken by the Government to address the issues of delayed payment in a written reply to the Rajya Sabha. 

Among the other initiatives of the Government to facilitates timely payment to MSMEs include:  

--  Samadhaan Portal for filing of grievances & for monitoring of the outstanding dues to the Micro & Small Enterprises (MSEs) from the buyers of goods and services including  payments due from Central Ministries/Department/Public Sector Enterprises  MSMEs. (https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx)
--  CPSE and all companies with the turnover of Rs. 500 Crore or more are mandated to get themselves on-boarded on the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers.
--  Companies delaying payments to MSMEs beyond 45 days need to submit a half yearly return to the Ministry of Corporate Affairs gibing reasons of the delay.
--  Budget 2023 announcement: Under Section 43B of Income Tax Act: Deduction has been allowed for expenditure incurred on payments only when payment is actually made to MSMEs.

(KNN Bureau)