Ministry of Micro, Small & Medium Enterprises (MSME) has released the figures of Procurement and Payment to Micro & Small Enterprises (MSEs), which are reflected on the Samadhan Portal, by the Central Public Sector Enterprises (CPSEs).

The Ministry has attached a table showing monthly rise in procurement, monthly rise in payments to MSMEs and fall in the ratio of pendency of payments.

It has also said that the pending payments are only to the tune of one fifth against the procurement and are mostly within 45 days; thus, forming part of normal business. 

In May 2020, 25 Ministries and 79 CPSEs reported; now in the month of October 2020, 26 Ministries and 100 CPSEs have reported: this has been going up consistently;

The total dues showing the total procurement & transactions from MSEs has gone up almost two and half times in October 2020 compared to May, 2020 from about Rs. 2300 cr. to about Rs. 5000 cr.

The payment to MSEs have also gone up in the same proportion from about 76% in May to about 80 % in October.

The pending dues at the end of a month, during all these months, is only around one-fifth of the total transaction which is in the normal course of business. Actually, this proportion has also been coming down in last six months from about 24% to about 20% during the period.  

Ministry of MSME has further said that with the experience of last six months, it can be said that the CPSEs are very pro-active in procuring from the MSEs.

They have also co-operated with the Ministry of MSME in reporting the details on new reporting format developed on the Samadhan portal after May, 2020.

The rise in CPSEs’ business with MSEs in last six months also shows bigger capital expenditure by CPSEs. Also, more and more payments flowing to the MSEs from CPSEs every month shows liquidity flow at both fronts: CPSEs & MSEs.