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19/10/2020 01:11pm

Govt writes to over 2800 corporates to clear MSME dues

image Govt writes to over 2800 corporates to clear MSME dues

New Delhi, Oct 19 (KNN) After requesting top 500 corporates of India to clear the pending payments of Micro, Small and Medium Enterprises (MSMEs) in the last month, the MSME ministry has again widened its request to India Inc by writing to top management of over 2800 corporates.

''Riding on excellent outcome of its efforts, the Union Ministry of MSME has substantially widened its request to India Inc. for making payments to MSMEs against their dues of goods and services rendered.

MSME Ministry has now written to top management of over 2800 corporates by name to make payment of pending dues of MSMEs in this month itself,'' an official statement from the Ministry said on Monday.

The Ministry further said that very good response has been seen from the corporate India adding ''Out of the last five months, the maximum payments to MSMEs have happened in the month of September, 2020.''

''Not only that, in that timeframe, even the procurement and transaction appears to be maximum in the month of September. MSME Ministry has informed that more than Rs 13400 crore have been paid by Central Public Sector Enterprises (CPSEs) alone in the last five months. Out of this, payments worth Rs 3700 crore have happened in September only. Ministry has complimented the Corporate sector of the country for this,'' the statement added.

The Ministry claimed that it has made relentless efforts including personal follow-up and digital intervention for the purpose of assisting MSMEs of the country to get release of their dues from various procurers.

In its latest communication to the larger corporate community of the Nation, the Ministry also said that it would facilitate the small enterprises to avail the business opportunity in the coming festival season.

''If the cash flows of MSMEs improve, they can make use of the festival season when there is opportunity to earn by supplying goods and services. In fact, some of the MSMEs look for such a period for their sustenance of the whole year,'' the statement quoted the Ministry as saying.

''Thus, timely payment of their receivables at this time will not only support the MSMEs and their dependents in this festive season but will also sustain many of them for a full year. Therefore, the Ministry has requested the corporates to see and make payment as soon as possible, preferably in the present month,'' it added.

In addition, Union MSME Ministry has also drawn attention of the Corporate India towards important administrative, legal and Fintech based provisions with regard to MSME payments. It says that:

  ---  It is ideal that payments are made in stipulated time. However, to solve the cash flow problems of MSMEs in absence of that, a bill discounting mechanism has been started by RBI in the name of TReDS. It is mandatory for all CPSEs and the companies with turnover of more than Rs. 500 Crore to join this platform. However, many companies are yet to join it or transact on it. Corporates have been requested to check whether their group/company has joined the TReDS platform and is doing transactions;

  ---  It also reminds the corporates of the legal provision under the MSME Development Act, 2006 which mandates to make the payment to MSMEs within 45 days. As per related regulations, the corporate entities are also supposed to file half-yearly returns with the Ministry of Corporate Affairs (MCA) about the dues of MSMEs. In many cases, this too is not being done. The Ministry has requested the corporates for their attention and needful action on this also.

While reiterating that the government is very keen to see that payment of receivables to MSMEs is made on time, the Ministry has drawn attention towards the announcement in this regard in AtmaNirbhar Bharat Package.

''Ministry also feels that a small gesture of payment to MSMEs during this period can go a long way and brighten lakhs of homes and crores of faces,'' the statement said.

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