MSMEs Issues Discussed at Rajya Sabha

The Government runs various programmers/schemes to boost business potential and to compete with other e-commerce large business entities through various digitalization initiatives for MSMEs such as Udyam portal, MSME Champions Portal, Government e-Marketplace (GeM), Trade Receivables Discounting System (TReDS), msmemart.com. In addition, MSME SAMBANDH for monitoring of procurement by Central Public Sector Enterprises (CPSEs) from Micro and Small Enterprises (MSEs) and MSME SAMADHAAN portals for filling applications regarding delayed payments. As on date 1.24 crore MSMEs are registered in the Udyam Registration portal and further benefitted through various programmes. Procurement from Central Ministries / Departments / CPSEs made purchases of about Rs. 95576 Cr. from MSEs under Public Procurement Policy (PPP) for MSEs and 21,360 applications filed by MSMEs have been disposed of by MSEFC council.

The information with respect to the status of revenue and profitability of MSMEs is not centrally maintained by the Ministry of MSME.

Under the MSME Champions Schemes ‘Digital MSME’ component has been included for the digital empowerment of MSMEs in the country. The Ministry of MSME proposes to support MSMEs through “Digital MSME” a component of MSME Champions Scheme to bring in digitization and digitalization and to make MSMEs digitally empowered and motivate them to adopt digital tools, applications and technologies in their production & business processes with a view to improving their competitiveness.

This information was given by the Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma in a written reply to the Lok Sabha.

Status on Pending Dues to MSMEs Discussed at Lok Sabha

Micro and Small Enterprises (MSEs) can file applications in Micro and Small Enterprise Facilitation Councils (MSEFCs) for delayed payments. After the application is admitted by the MSEFCs, it becomes a case. As per the information available on the SAMADHAAN Portal from 30.10.2017 to 30.04.2022, the details of total no. of pending applications in Andhra Pradesh  (district wise) are at Annex-I.

Steps taken by the Government to resolve the said issues are as follows:-

•           Under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, Micro & Small Enterprises Facilitation Councils (MSEFCs) have been set up in the States/UTs to deal with cases of delayed payments of the Micro and Small Enterprises (MSEs).

•           Ministry of MSME launched SAMADHAAN Portal on 30.10.2017 (https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx) for monitoring of the outstanding dues to the MSEs from the buyers of goods and services.

•           The Ministry of MSME created a special sub-portal within Samadhaan Portal on 14.06.2020, after the Aatma Nirbhar Bharat announcements, for reporting the dues and monthly payments by central Ministries/Department/Public Sector Enterprises to MSMEs. Dues of Rs. 1,65,034.09 crore have been paid to MSME vendors by Government Ministries/ Departments/CPSEs from May 2020 till 05th December, 2022.

•              The Ministry of MSME has also been urging States/UTs to set up more number of Micro & Small Enterprises Facilitation Councils (MSEFCs) for quicker disposal of cases related to delayed payments. The number of MSEFCs has gone up from 79 in 2019-20 to 113 in 2022-23. More than one MSEFC has been set up in Delhi, Jammu & Kashmir, Karnataka, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana and U.

•           Government of India has also instructed CPSEs and all companies with the turnover of Rs. 500 Crore or more to get themselves on-boarded on the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers.

•           Companies which get supplies  of goods or services from Micro & Small Enterprises and whose payment to Micro and Small Enterprises exceeds 45 days from the date of acceptance or the date of deemed acceptance of the goods or services, also need to submit a half yearly return to the Ministry of Corporate Affairs stating the amount of payments due and the reasons of the delay.

Annex-I