FISME seeks teeth for facilitation councils to clear delayed payments to MSMEs

New Delhi, Jul 4 (KNN) President of Federation of Indian Micro and Small & Medium Enterprises (FISME), D Gandhikumar has impressed upon MSME Minister Kalraj Mishra to seek amendments in the delayed payment laws so that power is given to the facilitation councils to summon the defaulting PSUs for clearance of delayed payments.

“Even though facilitation councils are working in many states, they are not having the powers to summon the public sectors and major undertakings who never turn up. So the facilitation should be given more teeth so that they can summon like courts,” Gandhikumar said in a presentation before the Minister here yesterday.

Although, legal provision has been made to ensure faster clearance of payments to the MSMEs for supply of goods to the larger companies, the mechanism for implementation has not been able to resolve the issue of delayed payments.

Payments worth several hundred crores are pending only among the PSUs.

The FISME President also touched upon the proper implementation of the public procurement policy which mandates that every central ministry/department and PSU will set a goal of procuring a minimum of 20 per cent of their annual purchases from the MSMEs.

The policy has also earmarked a sub target of four per cent out of this 20 per cent for MSMEs owned by the SC/ST entrepreneurs.

“Public Procurement Policy must be monitored by a committee so that it is implemented properly,” Gandhikumar said.

FISME chief also raised concerns over rising imports from China which are leading to closure of MSMEs in several industries like ceramics and fire crackers.

After taking charge, Mishra took a detailed presentation on various issues and problems in a meeting attended by about 60 different associations representing the MSME sector.

“He listed out some measures being taken up by the government. These include conducting skill development programmes at tool rooms and technology centres supporting modernization and innovation in MSME clusters. The Ministry is also implementing Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Up gradation. (KNN Bureau)