Bengaluru, Sept 16 (KNN) Pharmaceutical companies including MSMEs are facing the issue of delayed payment for medical supplies and withholding of security deposits in Karnataka.

The security deposits were made to participate in a tender process for medical supplies.

About Rs 300 crore bills are due for payment after the vendors supplied drugs through Karnataka State Medical Supplies Company Ltd. (KSMSCL), which procures drugs for State government medical facilities and also under National Health Mission (NHM), reported The Hindu.

Vendors have stopped participating in the tender process as the security deposit is not released even to those who do not qualify.

Many vendors are reportedly shying away due to high security deposit.

A letter has been sent by a MSME to the state government on pending dues from KSMSCL.  (KNN Bureau)