Pending MSME Payment Reaches Rs 21,108 Cr: Data
Over 90,000 applications reveal mounting dues as the government steps up measures to ensure timely payments
The backlog of payments to micro, small, and medium enterprises (MSMEs) has escalated to Rs 21,108 crore, with over 90,000 applications filed, according to data from the MSME Samadhaan portal. This platform, which tracks delayed payments from government entities, identifies state governments as the largest defaulters, with dues amounting to Rs 3,170 crore.
Central public sector undertakings follow closely, with Rs 2,191 crore in outstanding payments. The Micro and Small Enterprises Facilitation Council has already formalised 40,000 applications into cases, representing Rs 13,199 crore of these dues.
This surge in pending payments has prompted the government to intensify efforts to address delayed payments in the MSME sector. An official from the MSME ministry, speaking anonymously, emphasised the role of the Trade Receivables Electronic Discounting System (TReDS) in tackling these issues.
"TReDS provides bill discounting facilities, which help resolve payment delays for MSMEs. We are working on enhancing TReDS' effectiveness," the official stated.
Under the MSME Development Act, buyers are required to settle payments within 45 days of purchase from MSMEs. Delays beyond this period incur a penalty interest rate of three times the prevailing bank rate.
Last year, the government further incentivised prompt payments through amendments to the Income Tax Act, making outstanding MSME payments non-deductible from the entity's income, reinforcing the importance of timely settlements.
