The MSME receivables and dues should be paid in 45 days, according to the Ministry of MSME. Earlier, hundreds of firms reported about monthly dues and payments for the past last four months.
To settle dues, the Ministry has written e-letters to owners, CMDs or top executives of 500 corporates. Many MSMEs are doing business with big corporate groups. However, the payments are not coming from buyers and users of their goods and services. To tackle the situation, the Ministry has given three specific suggestions to the corporate world.
First, the Ministry requested the corporates to examine whether any payments are pending and to release the same at the earliest, Second, to ensure cash flows of MSMEs, it was made mandatory for all CPSEs and corporate entities with more than Rs. 500 crore turnover to on-board on the TReDS platforms. However, many corporates are yet to join it or transact thereon. They have been requested to onboard their companies on the TReDS and start transacting.
The Ministry has 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.