MSME ministry asks corporates to clear dues of small units on priority1 min read . Updated: 14 Sep 2020, 03:44 PM IST
The MSME ministry has asked top 500 corporate groups to clear the pending dues of small and medium enterprises on priority as these payments are important for operations and sustenance of jobs in the sector
NEW DELHI : The Ministry of Micro, Small and Medium Enterprises (MSMEs) has asked corporates to clear the pending dues of small and medium enterprises on priority as these payments are important for operations and sustenance of jobs in the sector, an official statement said on Monday.
The ministry has directly taken up the issue with the top 500 corporate groups of the country and has written e-letters to the owners, CMDs or top executives of these firms, it said.
"...these payments will bring smile on millions of faces whose only source of livelihood is the enterprises in the MSME sector. Ministry of MSME has also indicated that going further, it will be taking up the matter with other corporates through social media outreach also," it added.
During the announcement of Aatmanirbhar package, it was desired that the MSME receivables and dues should be paid in 45 days.
It added that around ₹10,000 crore have been reported to be paid by the ministries and CPSEs.
The MSME ministry "has now impressed upon the private sector enterprises of the country to take measures for release of payment of MSME dues on priority," it said.
The ministry has also urged corporates to join Trade Receivables Discounting System (TReDS) and start transacting.
In 2018, the ministry made it mandatory for all CPSEs and corporate entities with more than ₹500 crore turnover to onboard the TReDS platform.
"Ministry has also reminded the corporates that it has been made mandatory for the corporate entities to file half-yearly returns with the Ministry of Corporate Affairs on their dues to MSMEs. Corporates have been requested to file returns if not doing so already," it said.