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Upturn for MSME sector

MSME Sector-Payment of Dues of MSMEs by GOI and CPSEs

By Sanjana --
Wednesday, 16 Dec, 2020

New Delhi: Union Minister of Finance Smt Nirmala Sitharaman reviewed the situation about payment to the MSMEs and expressed satisfaction and appreciation on the excellent work done by the Ministry of MSME. As part of Prime Minister of India’s vision the Finance Minister had announced Atma Nirbhar Bharat package in May, 2020, it was also stated that the MSME dues should be paid in 45 days.

Since the month of May 2020, regular follow-up and concerted efforts have been made by Government of India, particularly by the MSME Ministry for payment of these dues. Particular focus was placed on Central Public Sector Enterprises (CPSEs) and the Central Government Agencies for payment of dues to MSMEs. As a result, over Rs 21000 crore of MSME dues have been paid in past 7 Months since May 2020 by the Central Govt Agencies and CPSEs. The highest level of Procurement was achieved in October of over Rs 5100 crore and payment of over Rs 4100 crore.

Going by the reports received in first 10 days for November 2020, this level of performance is expected to be surpassed as Procurement of about Rs 4700 crore and payment of about Rs 4000 crore have already been reported. Following table provides details in this regard:

Efforts made in respect of clearing MSME dues include several round of letters written to the GoI Ministries and CPSEs by the Secretary, MSME, followed by personal talks and persuasions. The efforts of the MSME Ministry found strong support from PMO and Cabinet Secretary, who wrote letters to the CPSEs and Government agencies. An on-line reporting system was developed by the Ministry for the CPSEs and Government of India Ministries to report details of total transactions, total payment as well as pending dues at the end of every month.

MSME Sector-Payment of Dues of MSMEs by GOI and CPSEs. New Delhi: Union Minister of Finance Smt Nirmala Sitharaman reviewed the situation about payment to the MSMEs and expressed satisfaction and appreciation on the excellent work done by the Ministry of MSME. As part of Prime Minister of India’s vision  the Finance Minister had announced Atma Nirbhar Bharat package in May, 2020, it was also stated that the MSME dues should be paid in 45 days.

Since the month of May 2020, regular follow-up and concerted efforts have been made by Government of India, particularly by the MSME Ministry for payment of these dues. Particular focus was placed on Central Public Sector Enterprises (CPSEs) and the Central Government Agencies for payment of dues to MSMEs. As a result, over Rs 21000 crore of MSME dues have been paid in past 7 Months since May 2020 by the Central Govt Agencies and CPSEs. The highest level of Procurement was achieved in October of over Rs 5100 crore and payment of over Rs 4100 crore.

Going by the reports received in first 10 days for November 2020, this level of performance is expected to be surpassed as Procurement of about Rs 4700 crore and payment of about Rs 4000 crore have already been reported. Following table provides details in this regard:

Efforts made in respect of clearing MSME dues include several round of letters written to the GoI Ministries and CPSEs by the Secretary, MSME, followed by personal talks and persuasions. The efforts of the MSME Ministry found strong support from PMO and Cabinet Secretary, who wrote letters to the CPSEs and Government agencies. An on-line reporting system was developed by the Ministry for the CPSEs and Government of India Ministries  to report details of total transactions, total payment as well as pending dues at the end of every month.