Delayed payments major concern for MSMEs: Assocham

New Delhi, Apr 6 (KNN) The government’s focus on capital expenditure, especially investment on infrastructure development, will boost economic growth and help MSMEs, said Ajay Singh, the newly appointed president of industry body Assocham.

However, the delay in payment to MSMEs for the supplies and services offered to big firms, including the PSUs, remain a big concern and the government should find a solution to this, Singh told HD.

The Assocham president pointed out that the general uplift in the economy is helping MSMEs, but certain industries remain under stress.

“Sector like hotel, aviation and tourism are still “grappling with the pains that they experienced for a protracted period of time during Covid,” he said.

The trade body appealed to the government to moderate the interest it charges on statutory dues that the companies were not able to pay on time.

Singh added that around 4.5 lakh MSMEs are associated with Assocham and the industry body would be pitching for their relief. Timely payments and fair interest if the payments are delayed are among the key pitches.

Lauding the government, Singh said the credit guarantee scheme extended by the government has proved very helpful for a large number of MSMEs.

With effect from April 1, 2023, the government has introduced the revamped credit guarantee scheme for MSMEs with budgetary allocation of Rs 9,000 crore.  (KNN Bureau)