Nitin Gadkari promises to solve issue of delayed payments to MSMEs
New rules have been implemented to ensure companies pay MSMEs on time. The guidelines added that the ministry will reserve the right to penalise defaulting entities.
Union Minister for MSME Nitin Gadkari said at a Laghu Udyog Bharti convention in Nagpur that delayed payments are a major headache for MSMEs, and that he is trying to find a solution to this issue.
"The small scale industry producer never gets payments on time. And this tires and finishes him. I am seriously thinking, whether it is private or public sector or government, that the payment of MSME should get released in 45 days, and I am trying to take some concrete decision on this," he said.
"MSMEs play an important role in creation of employment," he said, adding, "So far, MSMEs have given jobs to 11.50 crore youths, and in these five years I am aiming to add five crore more employment opportunities."
Expressing concern about the agrarian crisis, he said the MSME ministry is also focussing on handloom, handicrafts, and agro-processing industries.
Gadkari then said, promoting entrepreneurship is an important mission of the government, as without it we cannot become a 5 trillion dollar economy.
Talking about the pollution in Delhi, Gadkari said, "I want to tell you that (with) the works we have undertaken in these five years, Delhi will be completely free of air and water pollution before we complete our five years."
In February 2019, the Ministry of Corporate Affairs notified new guidelines that said directors of companies delaying payments to small businesses could face imprisonment up to six months, or face fines between Rs 25,000 and Rs 3 lakh.
The government also made it mandatory for all companies to file half yearly returns showing outstanding dues to MSME suppliers. They need to also assign reasons if such delays are for more than 45 days.
Further, new rules have been implemented to ensure companies pay MSMEs on time. The guidelines added that the ministry will reserve the right to penalise defaulting entities.
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