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The Government of India has launched MSME SAMADHAAN, a platform designed to tackle the problem of delayed payments that Micro, Small, and Medium Enterprises (MSMEs) often face. This initiative aims to provide a streamlined process for MSMEs to file their complaints regarding delayed payments and seek resolution. By doing so, it guarantees that MSMEs receive their payments on time, thereby enhancing their financial stability and well-being.
The Ministry of Micro, Small & Medium Enterprises (MSME) has created an online portal called MSME Samadhaan. This portal enables MSMEs to file complaints online regarding delayed payments. The portal was launched on October 30th, 2017 by Union Minister of State Shri Giriraj Singh. Its primary goal is to empower micro and small enterprises throughout the country to directly register their cases relating to delayed payments by Central Ministries, Departments, CPSEs, and State Governments.
The MSMED Act was passed by the Parliament of India on June 16, 2006, with the aim of promoting and developing micro, small, and medium enterprises (MSMEs). According to the Act, an MSME is defined based on the investment in plant and machinery or equipment, with different thresholds for micro, small, and medium enterprises. The Act includes various provisions to support and enhance the growth of MSMEs, such as credit facilities, procurement preference policy, funds, technology upgradation, skill development, and export promotion. Additionally, the Act emphasizes measures to improve the competitiveness of MSMEs, including research and development, quality improvement, productivity enhancement, and environmental protection. Over the years, the Act has undergone several amendments to adapt to changing circumstances. Overall, the MSMED Act 2006 holds great potential in fostering the development and competitiveness of MSMEs in India.
1. The MSME Samadhaan portal offers a convenient single window platform for MSMEs to register their complaints. By providing this centralized platform, MSMEs can easily file their complaints and keep track of the progress of their cases, ensuring a streamlined process.
2. With the option of online registration, MSMEs can now file their complaints conveniently through the portal. This online registration feature eliminates the need for physical paperwork and simplifies the complaint filing process for MSMEs.
3. MSMEs can stay updated on the status of their complaints through the portal’s tracking system. This feature allows MSMEs to monitor the progress of their cases, ensuring transparency and enabling them to take necessary actions accordingly.
4. The portal also serves as a valuable resource by providing information about the various grievance redressal mechanisms available to MSMEs. By accessing this information, MSMEs can better understand their rights and explore the appropriate channels to address their grievances.
5. Additionally, the MSME Samadhaan portal can play a crucial role in raising awareness about the issue of delayed payments. By highlighting this concern, the portal can exert pressure on buyers to make timely payments, ultimately benefiting MSMEs and promoting a fair business environment.
1. The MSME Samadhaan outlines the payment regulations as follows – a maximum of three Purchase and Sales invoices can be submitted. In the event that the buyer fails to make payment to the MSME supplier within 45 days of accepting the goods or services, the buyer is obligated to pay the MSME supplier an interest rate for the delayed payment. This interest rate will be calculated as a compound interest at three times the bank rate, as determined by the Reserve Bank of India.
2. Additionally, as per section 19 of the act, the buyer has the right to file an appeal against the decision of MSEFC. However, the appeal will only be considered by a court if the appellant has deposited 75% of the awarded amount.
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