Delayed-payment applications disposed of by States’ MSEFCs rise 152%

The number of delayed-payment applications by micro and small enterprises (MSEs) disposed of by States’ Micro and Small Enterprise Facilitation Councils (MSEFC) has surged 152 percent in the past 12 months.

As of Friday, 6,588 applications amounting to Rs 1,063 crore have been disposed of from 2,616 applications, amounting to Rs 609 crore (a year ago), data from the MSME dashboard reveal.

The number of delayed-payment applications rejected by States’ MSEFCs has jumped 102 percent during the same time period.

From 6,694 rejected applications on April 1, 2020, the quantum of rejected applications has risen to 13,485 as of Friday.

The total number of delayed-payment applications filed by MSMEs stood at 73,825 as of Friday. Further, in terms of mutually settled cases, 6,660 applications have been disposed of so far.

The MSME Samadhaan portal was launched in October 2017 by then MSME Minister of State (MoS), Giriraj Singh.

MSME Samadhaan is a delayed-payment monitoring portal. It is governed by Micro and Small Enterprise Facilitation Councils at the State level for the settlement of disputes relating to the delayed payments to MSEs by government departments, ministries and central public sector enterprises (CPSEs)

In case a payment is delayed beyond 45 days, MSEs can approach the MSEFCs to fast-track settlement of dues.

The highest number of delayed-payment applications filed by MSEs is from Maharashtra, at 18,577, followed by 7,187 from Delhi, 5,906 from Haryana and 5,789 from Gujarat, according to a written response shared by Nitin Gadkari, Minister for Micro, Small and Medium Enterprises, to Parliament.

While the Covid-19 pandemic ravaged all sectors, the MSME sector is said to have borne the brunt of the pandemic.

As a result of the pandemic-induced lockdown, the MSME sector has been facing a massive liquidity and supply crunch, shortage of labour and non-payment of dues.

The government had announced a Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs under the Aatmanirbhar Bharat Abhiyan package in order to mitigate the stress caused by the lockdown. The scheme was valid till October.

Finance Minister Sitharaman had later extended the ECLGS till November 2020 and had further extended it till March 31, 2021. The scheme has again been extended by another three months till June 30, 2021.