MSMEs await pending dues

Govt-set 45-day deadline ended in June

Despite the 45-day deadline set by the stimulus package for payment of pending receivables from the central government and PSUs lapsing, several MSMEs are still to receive their dues. As of mid-May, MSMEs had pending payments estimated at Rs 5 lakh crore.

Finance minister Nirmala Sitharaman, in her stimulus package announced on May 13, had assured that all the pending receivables from the central government agencies and CPSEs will be paid to MSMEs in 45 days. The deadline has passed by June-end.

"Several MSMEs have not received their pending dues yet. Many of the MSMEs have complained about the pending payments from the Railways and some about the PSUs," Rajive Chawla, chairman of I am SME of India (Integrated Association of Micro Small & Medium Enterprises of India) told Financial Chronicle. The association had recently conducted a survey of over 1,000 MSMEs from different sectors to understand the status of the government payment.

Many companies which have received part of their dues say the payment has come in its due course and there has been no hurried payment from the central government agencies or PSUs to meet the deadline.

According to SMEStreet,

a knowledge and networking platform for MSMEs, prior to the stimulus package, the central government and CPSEs had pending payments aggregating Rs 5 lakh crore.

"Union minister Nitin Gadkari had informed SMEStreet in the last week of May that state governments, their ministries and public sector undertakings, government of India, its ministries and undertakings, and major industries combined owe an estimated Rs 5 lakh crore to MSMEs," said Faiz Askari, founder of SMEStreet.

Apart from assuring it that the central ministries and PSUs would clear outstanding payments of MSMEs within 45 days, the minister had also told SMEStreet that he had requested the states to clear the dues owed by their departments and state-owned undertakings.