MSME Ministry considering a policy to check delayed payment to MSMEs
Chennai, Sep 30 (KNN) The Ministry of Micro, Small and Medium Enterprises (MSME) is seriously considering to introduce a policy to check delayed payments to MSMEs from major industries, public entities, state and central governments, Nitin Gadkari, Union Minister for Road, Transport, Highways and MSMEs said.
''MSMEs have been facing problems in receiving timely payment for the supplies they offered to major industries, public entitites and government agencies.
At times it takes six months to collect payments,'' the Minister said after inaugurating a conference, Wtalk Chennai, orgainised by two private firms here in Chennai on Saturday.
''The government was working on a policy by which they would get payments within 45 days of supply and those failing, and unable to sanction payments within 45 days, would attract an interest burden of 14 per cent,'' he said.
The Minister further said that apart from a committee who is already working on formulating policy, the ministry has also developed a delayed payment monitoring system- MSME Samadhaan. MSME can lodge complaints about delayed payments on the portal.
Lauding MSMEs' contribution in country's GDP, which also provide 11 crore jobs, as the country's growth engine, he said, '' We have decided to develop a programme for 5 years and our intention is to create 5 crore new jobs. We also aim to improve the GDP of the sector from 29 per cent to 50 per cent and export from 49 per cent to 60 per cent in the coming years.''