The Ministry of Micro, Small and Medium Enterprises (MSME) has written to the top management of over 2800 corporates to make payment of pending dues of MSMEs in this month itself. It also advised making the payment to MSMEs within 45 days.
The Ministry said that payments had to be made in stipulated time. However, to solve the cash flow problems of MSMEs in the absence of timely payment, a bill discounting mechanism had been started by RBI in the name of TReDS. It was mandatory for all CPSEs and the companies with turnover of more than Rs. 500 crore to join this platform. But many companies were yet to join it or transact on it. The corporates had been requested to check whether their group/company had joined the TReDS platform and were doing transactions.
Last month, the Ministry of MSME had written to top 500 corporates of India about the pending payments of MSMEs. Over the last five months, the maximum payments to MSMEs had happened in September. MSME Ministry has informed that more than Rs. 13400 crore has been paid by Central Public Sector Enterprises alone in the last five months. Payments worth Rs. 3700 crore have happened in September.