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Govt Asks Corporates To Clear MSME Dues On Priority

By Staff

On Monday, the MSME Ministry has asked corporates of the country to clear dues of small and medium enterprises (SMEs) on priority as these payments are important for operations and sustenance of jobs in the sector.

The government has directly taken up the issue with the top 500 corporate groups and written e-letters to owners, CMDs or top executives of these firms.

Govt Asks Corporates To Clear MSME Dues On Priority

"...these payments will bring smile on millions of faces whose only source of livelihood is the enterprises in the MSME sector. Ministry of MSME has also indicated that going further, it will be taking up the matter with other corporates through social media outreach also," it added.

During the announcement of the Aatmanirbhar package, it was desired that the MSME receivables and dues should be paid in 45 days, adding that around Rs 10,000 crore have been reported to be paid by the ministries and CPSEs.

The MSME ministry "has now impressed upon the private sector enterprises of the country to take measures for release of payment of MSME dues on priority," it said.

"Ministry has also reminded the corporates that it has been made mandatory for the corporate entities to file half-yearly returns with the Ministry of Corporate Affairs on their dues to MSMEs. Corporates have been requested to file returns if not doing so already," it said.

The ministry has also urged corporates to join Trade Receivables Discounting System (TReDS) and start transacting. The TReDS platform onboarding was made mandatory in 2018 for all CPSEs and corporate entities with more than Rs 500 crore turnover.

Read more about: msme sme
Story first published: Monday, September 14, 2020, 16:01 [IST]
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