Clear dues of MSMEs, industry urges govt
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Tribune News Service
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New Delhi, May 18
The industry has asked the government to monitor its announcements regarding payment of dues to MSMEs on a portal that should also receive complaints of non-payments.
The industry’s suggestion came after a CII survey showed that contrary to repeated government announcements about refunding of dues, 450 MSMEs reported delayed payments worth Rs 1,819 crore. Public sector and government departments, including states, owed bulk of the amount and the private sector owed Rs 110 crore.
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The sample CII poll revealed that about one-third of MSMEs had their dues delayed for over two years and about Rs 895 crore is stuck in litigation. “These need to be resolved soon to save the MSMEs from insolvency,” said CII Director General Chandrajit Banerjee. As a priority, the government must make efforts to settle all GST refunds to the MSMEs due to disputes. The CII has also asked the Centre and states to immediately release all stimulus payments promised so far to the MSMEs.
The industry has also sought additional reconstruction term loans from banks for the MSMEs on the basis of the Centre’s promise to guarantee up to 20% of default.
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