Publish Date : 08.09.20

Historic Interventions made by the Central Government to Ensure Timely Payments to MSMEs

To help the MSMEs Government of India has taken a series of measures recently. Union Finance Minister, as part of AtmaNirbhar Bharat package, had announced that Government entities should make such payments within 45 days. The MSME Development Act of 2006 provides that such dues should be paid within 45 days. However, it is seen that MSME suppliers of goods and services do not receive their due payments within the stipulated time. Public and private entities do cross this time limit and hence they cause hardship to the MSMEs.

Another intervention is that the Department of Expenditure has issued an OM to the effect that the buyer organization will have to pay penal interest of 1% per month for delayed payment beyond prescribed timeline till the date of such payment; We encourage the MSMEs to register on the Udyam Registration Portal. As on 1st September, close to 4.00 lakh registrations have already taken place since the new system was launched in July; The Ministry of MSMEs re-iterates and alerts the enterprises and entrepreneurs to beware of fake websites who are charging money in the name of facilitating registration. It is requested that the registration should be done on and through the Government website only.