MSME Ministry: Government asks private sector to clear payments due to MSMEs – The Economic Times

Clipped from: https://economictimes.indiatimes.com/small-biz/sme-sector/msme-ministry-asks-corporates-to-clear-dues-of-small-units-on-priority/articleshow/78103313.cmsSynopsis

The ministry has also asked corporates to ensure that they are filing half-yearly returns as mandated by the Ministry of corporate affairs on their dues to MSMEs.

NEW DELHI: The Ministry of micro, small and medium enterprises has asked private sector enterprises in the country to clear dues of small businesses on priority.

The Ministry has directly taken up the issue with the top 500 corporate groups of the country, a statement issued by the MSME ministry on Monday said. Going further, the ministry will be taking up the matter with other corporates through social media as well, it has indicated in its communication.

When the AtmaNirbhar Bharat package was announced in June this year, the government had asked for all dues of MSMEs to be cleared within 45 days.

The MSME ministry has taken up the matter aggressively with Central Ministries, their departments and Central Public Sector Enterprises (CPSEs), the statement said.

Besides, an online system for reporting the monthly dues has also been set up by the ministry. “Around Rs. 10000 crores have been reported to have been paid by the Ministries and CPSEs,” the ministry said.

The ministry has also taken up the issue with States and motivated them to monitor and see that such payments are made expeditiously. It has now reached out to the top brass of corporates in the country.

These payments are very important for MSME operations and sustenance of jobs and other economic activities at the grass-root level, the ministry has said, asking corporates to examine if payments to MSMEs are due in their end, and release them accordingly.

Towards another solution of the issue of cash flows of MSMEs, it has been emphasised that it was made mandatory by the Ministry of MSME in 2018, for all CPSEs and corporate entities with more than Rs. 500 Crore turnover to on-board on the TReDS platforms, the statement said.

Since many corporates are yet to join or transact on the platform, they have been requested to onboard their companies on the TReDS and start transacting. The ministry has also asked corporates to ensure that they are filing half-yearly returns as mandated by the Ministry of corporate affairs on their dues to MSMEs.

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