1.70 Lakh MSMEs File For Recovery Of Rs 40,004 Crore On Samadhaan Portal

New Delhi, Jan 16 (KNN) MSME Samadhaan, the delayed payment monitoring platform launched by the government in October 2017, has received 1.70 lakh applications aimed to recover Rs 40,004 crore from government departments, public sector enterprises, and other buyers of goods and services from micro and small enterprises (MSEs).

Data from the platform reveals that, as of Monday, only 14.7 per cent of the total due amount, equivalent to Rs 5,896 crore, has been recovered across 33,707 disposed cases.

On the flip side, 44,420 applications, involving Rs 8,904 crore, have faced rejection, while 15,894 applications totalling Rs 1,995 crore have been mutually settled.

Highlighting a concerning trend, Central Public Sector Enterprises (CPSEs) emerged as significant defaulters until the end of 2023. By December 26, MSEs had filed 6,167 complaints against various CPSEs.

Notably, Bharat Sanchar Nigam Limited (BSNL) faced 2,120 applications since October 2017, with only 880 disposed. Other top defaulters included Indian Oil Corporation, Bharat Heavy Electricals, Bridge & Roof Co. (India).

However, the main defaulters were found to be proprietorship businesses, Micro, Small, and Medium Enterprises (MSMEs) units, and state governments, as opposed to central Public Sector Undertakings (PSUs) or government departments.

According to the portal’s data, 40,730 applications were filed by the end of the last year against proprietorships failing to make timely payments to MSEs, with 6,462 applications disposed.

In a bid to address the persistent issue of delayed payments, the government has permitted deductions to buyers under Section 43B of the Income Tax Act.

This provision allows for expenditure deductions only when payments are actually made to MSMEs, aiming to curb the menace of delayed payments and provide relief to MSEs.

(KNN Bureau)