Initiative to boost MSME sector by the Ministry of MSME



Quick Summary
The Ministry of Micro, Small and Medium Enterprises (MSME) has launched several initiatives to address the critical issue of delayed payments to MSMEs. These include setting up Micro and Small Enterprises Facilitation Councils (MSEFCs) nationwide for dispute resolution, and the MSME SAMADHAAN portal for online registration and tracking of delayed payment cases. Additionally, companies with significant turnover are now required to report overdue payments to the Ministry of Corporate Affairs and onboard the Trade Receivables Discounting System (TReDS) platform.

• “Early Clearance Of MSME's' Bills'

• Overview:

Ministry of Micro, Small and Medium Enterprises (MSME) vide press release dated 16.03.2020 and Release ID: 1606525 addressed issues related to delayed payments of Micro, Small and Medium Enterprises (MSMEs).

• Following steps has been taken by the Ministry:

1. Setting up of MSEFCs

Micro and Small Enterprises Facilitation Councils (MSEFCs) have been set up in all States/ UTs to resolve the delayed payments cases by way of conciliation and / or arbitration as per the provisions of the Micro, Small & Medium Enterprises Development Act, 2006.

MSME Delayed Payments: Ministry s New Initiative

2. MSME SAMADHAAN - Digital Portal

Ministry of MSME has launched MSME SAMADHAAN portal to facilitate online registration of references related to delayed payments.

3. MSME Returns with MCA:

Companies which get supplies of goods or services from Micro & Small Enterprises and whose payments to micro and small enterprises exceed 45 days from the date of acceptance or the date of deemed acceptance of the goods or services have been required to submit a half yearly return to the Ministry of Corporate Affairs stating the amount of payments due and the reason of delay.

 

4. Trade Receivables Discounting System Platform (TReDS)

Companies registered as per the Companies Act, 2013 with a turnover of more than Rs. 500 crore and all Central Public Sector Enterprises have been required to get themselves on boarded on the Trade Receivables Discounting System Platform (TReDS).

• BRIEF ABOUT MSME SAMADHAAN PORTAL

This online portal has been set-up by the ministry with the aim to :

 

To facilitate online registration of references related to delayed payments.
MSEs across the country can register online their cases relating to delayed payments
MSEs can also check the status of their cases on the above portal.

Source - Link: https://pib.gov.in/PressReleseDetail.aspx?PRID=1606469

Disclaimer: IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.




About the Author

Company Secretary

Company Secretary having 11+ years of post qualification experience in the Compliance Management Services industry by serving Corporates including Listed Companies, Corporate Secretarial Firms and LLP. Have a keen interest in the Corporate Governance and Compliance Management and the soaring craving to learn everyday. ... Read more

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