Micro, Small and Medium enterprises (MSMEs) have to overcome multiple issues to settle in their business and make profits but this becomes harder when they have dues from government and customers. MSME Samadhaan was launched in 2017 to monitor delayed payments and pace up the entire process. It regulates dues from all government sources like central ministries, departments, central public sector enterprises. The portal was launched by Giriraj Singh, then MoS in October, 2017. Around 13,091 cases have been filed in MSME Facilitation Council in last two and a half years and it has facilitated the disposal of 3.145 cases until now.
The buyers are bound to pay within 45 days of buying goods or services. The failure in doing so leads to filing case in Facilitation Council and every case is supposed to be solved within 90 days of filing. A total amount of Rs 4112 crores is payable from the filed cases while Rs 598 crore has been covered in the disposed cases. Delayed payments bring MSME owners into a debt cycle by forcing them to take credit from other sources.
MSME association, World Association for Small and Medium Enterprises (WASME) wrote to Honorable Prime Minister, Narendra Modi to fastrack the process and complete in 15 working days. Sanjiv Layek, Executive Secretary WASME told that in addition to clearing payments within 15 working days, MSMEs should also be granted loans on-demand or existing limit should be extended to help them.
Due to 92% less business, around 60 million MSMEs are in danger. Finance Minister, Nirmala Sitharaman announced that for coming three months, government would bear 24% contribution of both employee and employer combined to the Employee Provident Fund. This came as a slight relief for MSMEs.