MSME Delayed Payment Portal – MSME Samadhaan

•  Delayed Payment Portal – MSME Samadhaan was launched for empowering micro and small entrepreneurs across the country to directly register their cases relating to delayed payments by Central Ministries/Departments/CPSEs/State Governments.
• The Portal will give information about the pending payment of MSEs with individual CPSEs / Central Ministries, State Governments, etc.
• The CEO of PSEs and the Secretary of the Ministries concerned will also be able to monitor the cases of delayed payment under their jurisdiction and issue necessary instructions to resolve the issues.
• The portal will greatly facilitate the monitoring of the delayed payment in a more effective manner. The information on the portal will be available in public domain, thus exerting moral pressure on the defaulting organisations.
• The MSEs will also be empowered to access the portal and monitor their cases.
• The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains provisions to deal with cases of delayed payment to Micro and Small Enterprises (MSEs).

About MSMED Act, 2006:

• The earlier concept of ‘Industries’ has been changed to ‘Enterprises’. Enterprises have been classified broadly into: (1) Enterprises engaged in the manufacture/production of goods pertaining to any industry; and (2) Enterprises engaged in providing/rendering of services.
• Manufacturing Enterprises have been defined in terms of investment in plant and machinery (excluding land & buildings) and further classified into: (a) Micro Enterprises – investment up to Rs.25 lakh; (b) Small Enterprises – investment above Rs.25 lakh & up to Rs. 5 crore; (c) Medium Enterprises – investment above Rs.5 crore & up to Rs. 10 crore.
• The Service enterprises have been defined in terms of their investment in equipment (excluding land & buildings) and further classified into: (a) Micro Enterprises – investment up to Rs. 10 lakh; (b) Small Enterprises – investment above Rs. 10 lakh & up to Rs. 2 crore; (c) Medium Enterprises – investment above Rs.2 crore & up to Rs. 5 crore.It defines ‘Medium Enterprises’ to facilitate achievement of economies of scale.
• It provides statutory basis to Purchase Preference Policy for goods and services provided by micro and small enterprises. It also strengthens the legal provisions to check delayed payments to micro & small enterprises.
• The Act provides statutory basis to the National Board for Micro, Small & Medium Enterprises.
• The cumbersome two-stage registration process of SSI has been substituted with an optional filing of memorandum by Micro, Small & Medium Enterprises.
• The Act aims at facilitating the promotion and development of small and medium enterprises in a competitive way.
• It seeks to empower the Central Government to notify programmes, guidelines or instructions for facilitating the promotion and growth of small and medium enterprises.
• One of its primary objectives is to make provisions for ensuring timely and smooth flow of credit to small and medium enterprises.

By: Vishal