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Home / News / India /  Govt asks top 500 private companies to clear MSME dues

Govt asks top 500 private companies to clear MSME dues

Small businesses have been grappling with the issue of liquidity shortage due the lockdown. Photo: Bloomberg

Government departments and state-owned companies have already paid around 10,000 crore to MSMEs

NEW DELHI : The Union ministry for micro, small and medium enterprises (MSMEs) on Monday said it has “strongly" taken up with top 500 private companies the issue of delayed payments and dues to small businesses.

NEW DELHI : The Union ministry for micro, small and medium enterprises (MSMEs) on Monday said it has “strongly" taken up with top 500 private companies the issue of delayed payments and dues to small businesses.

The outbreak of covid-19 and a consequent nationwide lockdown has battered small businesses, with most of them struggling to survive. Against this backdrop, MSME secretary A.K. Sharma has written to the companies, asking them to clear all dues as the payments are crucial for the survival of small businesses.

The outbreak of covid-19 and a consequent nationwide lockdown has battered small businesses, with most of them struggling to survive. Against this backdrop, MSME secretary A.K. Sharma has written to the companies, asking them to clear all dues as the payments are crucial for the survival of small businesses.

“This will ultimately benefit the entire economy, including the corporate world. The ministry has therefore requested the corporates to examine whether any such payments are pending and to release the same at the earliest," the government said.

“This will ultimately benefit the entire economy, including the corporate world. The ministry has therefore requested the corporates to examine whether any such payments are pending and to release the same at the earliest," the government said.

Small businesses have been grappling with liquidity shortage because of the lockdown. In May, Union finance minister Nirmala Sitharaman had said that companies and government departments will have to clear pending dues to MSMEs in 45 days. Government departments and state-owned companies have already paid around 10,000 crore, the ministry said.

Small businesses have been grappling with liquidity shortage because of the lockdown. In May, Union finance minister Nirmala Sitharaman had said that companies and government departments will have to clear pending dues to MSMEs in 45 days. Government departments and state-owned companies have already paid around 10,000 crore, the ministry said.

“You may be aware that payment of MSME receivables within 45 days is mandated under the MSME Development Act, 2006, which is administered by this ministry. Moreover, your gesture will be a timely contribution for the economy of the nation. It will help bring a smile on millions of faces whose only source of livelihood are these smaller units," Sharma wrote.

“You may be aware that payment of MSME receivables within 45 days is mandated under the MSME Development Act, 2006, which is administered by this ministry. Moreover, your gesture will be a timely contribution for the economy of the nation. It will help bring a smile on millions of faces whose only source of livelihood are these smaller units," Sharma wrote.

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