Pending MSME Payments Soar To Rs 21,108 Cr Across 90,000 Applications In Samadhan Portal

New Delhi, Oct 30 (KNN) A mounting backlog of payments to micro, small and medium enterprises (MSMEs) has reached Rs 21,108 crore across 90,000 applications, according to recent data fr0m the MSME Samadhaan portal.

The portal, which tracks delayed payments fr0m government entities, reveals state governments as the largest defaulters with pending dues of Rs 3,170 crore, while central public sector undertakings follow with Rs 2,191 crore in outstanding payments.

The Micro and Small Enterprises Facilitation Council has already converted 40,000 applications, worth Rs 13,199 crore, into formal cases.

This development comes as the government strengthens its efforts to address the persistent challenge of delayed payments in the MSME sector.

A senior MSME ministry official, speaking on condition of anonymity, highlighted the role of the Trade Receivables electronic Discounting System (TReDS) in addressing these payment delays.

"TReDS portal provides bill discounting facilities, which is helping tackle delayed payment issues of the MSMEs. We are working on making TReDS more effective," the official stated.

Under the MSME Development Act, buyers are required to make payments within 45 days of purchase fr0m MSMEs. Failure to meet this deadline results in a penalty interest rate of three times the prevalent bank rate on the outstanding amount.

To further encourage timely payments, the government introduced amendments to the Income Tax Act last year, making pending MSME payments ineligible for deduction fr0m the entity's income, thereby incentivising prompt settlement of dues.

(KNN Bureau)