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Wednesday, January 27, 2021

Monthly rise in procurement and payments to MSMEs: Govt

Total procurement and transactions from MSMEs has gone up almost two-and-a-half times in October to Rs 5,000 crore compared to Rs 2,300 crore in May.

By: ENS Economic Bureau | New Delhi | November 25, 2020 3:16:36 am
The MSME Ministry’s Samadhaan portal accounts for only a part of the total dues to units.

The Ministry of Micro, Small and Medium Enterprises (MSMEs) Tuesday said that there has been a monthly rise in procurement and payments to MSMEs, alongside a fall in the ratio of pendency of payments. The pending payments to MSMEs are around one-fifth against the procurement and within the 45-day window, it said.

Total procurement and transactions from MSMEs has gone up almost two-and-a-half times in October to Rs 5,000 crore compared to Rs 2,300 crore in May, the ministry said, adding that payments to MSMEs have also gone up in the same proportion from about 76 per cent in May to about 80 per cent in October.

On Monday, The Indian Express had reported that the pending dues to MSMEs, as shown on the ministry’s dashboard, rose to Rs 969.19 crore in July, higher than Rs 561.64 crore of pending dues in May and continued to be elevated in August at Rs 830.36 crore. The Ministry clarified that total dues at the end of a month “have to be seen against total procurement and transactions at the end of the same month and the payments made”.

The proportion of pending payments as part of total transactions has reduced to about 20.65 per cent in October from 23.9 per cent in May, as reported by 26 ministries and 100 CPSEs in October as against 25 ministries and 79 CPSEs in May, it said.

The procurement data, however, is not reflected in the Ministry’s dashboard. The MSME Ministry’s Samadhaan portal accounts for only a part of the total dues to units. The corporate sector and states and state government enterprises owe MSMEs, in addition to dues reflected on the portal.

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