Ministry of MSMEs: The Procurement from and Payment to MSMEs Got Doubled in October Comparing to May

On Tuesday, Ministry of MSMEs said that "there has been a monthly rise in procurement and payments to MSMEs, alongside a fall in the ratio of the pendency of payments to the MSMEs. The pending payments to MSMEs are around one-fifth against the procurement and within the 45- day window."

According to Ministry, Procurement from  MSMEs has risen almost 2.5 times in October to 2000 crore, compared to 2300 crore in May. They added that the same way, payments to MSMEs, also, has risen from 70 per cent in May to almost 80 per cent in October.

The Indian Express had reported on Monday, that based on the ministry's dashboard, the pending due to MSMEs rose to Rs. 969.19 crore in July, which is higher than Rs. 561.64 crore that of in May, and kept rising to Rs. 830.36 crore in August. The ministry explained that the total dues at the end of a month" have to be seen against total procurement and transactions at the end of the same month and the payments made."

According to ministry, "the proportion of pending payments as part of total transactions has reduced to about 20.65 per cent in October from 23.9 per cent in May, as reported by 26 ministries and 100 CPSEs in October as against 25 ministries and 79 CPSEs in May."

"Of the total dues in October, MSMEs have been paid Rs 4,044.10 crore in the month," the Ministry stated in a release.

The ministry released the figures of procurement and payment to MSMEs reflected on Samadhan Portal, by the Central Public Sector Enterprises (CPSEs).

An official statement said: "The rise in CPSEs' business with MSMEs in last six months also shows that the CPSEs are very pro-active in procuring from the MSEs. Also, more and more payments flowing to the MSEs from CPSEs every month shows liquidity flow at both fronts: CPSEs and MSMEs."