SME Times News Bureau | 10 Dec, 2020
Union Minister of Finance Nirmala Sitharaman
reviewed the situation about payment to the MSMEs and expressed satisfaction
and appreciation on the excellent work done by the Ministry of MSME, an
official statement said.
As part of Prime Minister of India’s vision
the Finance Minister had announced Atma Nirbhar Bharat package in May,
2020, it was also stated that the MSME dues should be paid in 45 days.
Since the month of May 2020, regular follow-up
and concerted efforts have been made by Government of India, particularly by
the MSME Ministry for payment of these dues. Particular focus was placed on
Central Public Sector Enterprises (CPSEs) and the Central Government Agencies
for payment of dues to MSMEs.
As a result, over Rs 21000 crore of MSME dues
have been paid in past 7 Months since May 2020 by the Central Govt Agencies and
CPSEs, said the statement.
The highest level of Procurement was achieved in
October of over Rs 5100 crore and payment of over Rs 4100 crore. Going by the
reports received in first 10 days for November 2020, this level of performance
is expected to be surpassed as Procurement of about Rs 4700 crore and payment
of about Rs 4000 crore have already been reported.
Efforts made in respect of clearing MSME dues include
several round of letters written to the GoI Ministries and CPSEs by the
Secretary, MSME, followed by personal talks and persuasions.
The efforts of the MSME Ministry found strong support from
PMO and Cabinet Secretary, who wrote letters to the CPSEs and Government
agencies. An on-line reporting system was developed by the Ministry for the
CPSEs and Government of India Ministries to report details of total
transactions, total payment as well as pending dues at the end of every month.
The Ministry of MSME has complimented the Government of
India Ministries, Departments and the CPSEs for their support to the
MSMEs.
This support was important particularly in the months of
September and October. Because with these cash flows, the MSMEs were supposed
to produce goods and services which could be particularly sold during the
festival time.
MSME Ministry had requested the Corporate sector to help the
MSMEs during the festival season because the earning during these festivals
would sustain many MSMEs for the whole year. This support has also helped many
MSMEs and Village Industries to do better business than even the previous year.