In another major step towards payment of MSME dues by different sectors, the Union Ministry of Micro, Small and Medium Enterprises (MSMEs) has now impressed upon the private sector enterprises of the country to take measures for release of payment of MSME dues on priority.
During the announcement of AatmNirbhar Package, it was desired that the MSME receivables and dues should be paid in 45 days. Accordingly, the Ministry of MSME took up the matter aggressively with Central Ministries, their Departments and Central Public Sector Enterprises (CPSEs). In addition to writing and following up with them, Ministry has also devised an online system for reporting. Hundreds of CPSEs have been reporting on this system about the monthly dues and payments since the last four months. Around INR 10000 crores have been reported to have been paid by the Ministries and CPSEs. Similarly, the Ministry has also taken up the issue with States and motivated them to monitor and see that such payments are made expeditiously.
Taking the efforts now further deeper, Ministry has directly taken up the issue with top 500 corporates groups of the country. Ministry has written e-letters to the owners, CMDs or top executives of these five hundred corporates. While conveying its support and solidarity in these difficult times, Ministry has strongly taken up the issue of pending payments of MSMEs. It has said that many of the MSMEs are doing business with big corporate groups. However, the payments are not coming from buyers and users of their goods and services. Ministry has added that Direct and indirect dependence of households, professionals and workers on MSME sector is all-pervasive. While thanking those who made payments in recent months, Ministry has said that a lot remains to be done. To tackle the situation, Ministry has given three specific suggestions to the corporate world.
While appealing to Corporate India for their good gesture towards smaller units, the ministry of MSME has also reminded them of the legal provisions under the MSME Development Act, 2006 which mandate that the payment of MSME receivables are made within 45 days. The ministry has also said that this would be a great contribution for the economy of the Nation. Ministry also feels that these payments will bring smiles on millions of faces whose only source of livelihood is the enterprises in the MSME sector.
The Ministry of MSME has also indicated that going further, it will be taking up the matter with other corporates through social media outreach also.