MSME Samadhaan: Government launches MSME Delayed Payment Portal

The Union Ministry of Micro, Small & Medium Enterprises (MSME) has launched MSME Delayed Payment Portal – MSME Samadhaan (http://msefc.msme.gov.in).
The portal aims at empowering micro and small entrepreneurs across country to directly register their cases relating to delayed payments by Central Ministries, Departments, CPSEs, State Governments.

Key Facts

The Samadhaan portal will give information about pending payment of MSEs with individual CPSEs/Central Ministries, State Governments, etc. The CEO of PSEs and Secretary of Ministries concerned will also be able to monitor cases of delayed payment under their jurisdiction and issue necessary instructions to resolve the issues.
The portal will facilitate monitoring of delayed payment in more effective manner. The information on portal will be available in public domain, thus exerting moral pressure on defaulting organisations. The MSEs will also be empowered to access portal and monitor their cases.

Background

Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains provisions to deal with cases of delayed payment to Micro and Small Enterprises (MSEs). As per provisions, buyer is liable to pay compound interest with monthly rests to supplier on amount at three times of bank rate notified by Reserve Bank of India (RBI) in case he does not make payment to supplier for supplies of goods or services within 45 days of day of acceptance of  goods and services ordeemed day of acceptance.

Month: Current Affairs - October, 2017