Team News Riveting
The Ministry of Micro, Small and Medium Enterprises (MSMEs) had asked private sector enterprises to pay the dues of minor units on priority showing solidarity.
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).
Around Rs 10000 crore had been paid by the Ministries and CPSEs in the last four months. The ministry had decided to intensify its campaign and pursue the top corporate.
“Ministry has directly taken up the issue with top 500 corporate groups of the country and written e-letters to the owners, CMDs and top executives conveying its support and solidarity in these difficult times,” spokesperson of the ministry said.
The letter said many MSMEs had been into the business with big corporate groups. However, the payments are not coming from buyers and users of their goods and services. The Ministry has added that Direct and indirect dependence of households, professionals and workers on the MSME sector is all-pervasive.
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 turn-over to on-board on the TReDS platforms. However, many corporate are yet to join it or transact thereon.
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 be made within 45 days.
The Ministry has also said that this would be a great contribution for the economy of the Nation. “The due payments will bring smiles on millions of faces whose only source of livelihood is the enterprises in the MSME sector,” the spokesperson said, adding that the ministry of MSME has also indicated that going further it will be taking up the matter with other corporate through social media outreach also.
