An awareness programme focussing on the Delayed Payment Act and the powers of MSE Facilitation Council (MSEFC) is being held for Micro, Small & Medium Enterprises (MSMEs) in Mysuru on December 18, 2018, according to media reports. The event is being organised by MSME-DI Bengaluru, Directorate of MSME, Government of Karnataka, Bangalore District Industries Center, Vidya Vikas Education Institutions, Mysuru Industries Association, and the Micro Small & Medium Enterprises Council.
The programme will most likely see participation from the micro and small enterprises located in the Mysuru, Mandya, Kodagu, Hassan, Chikkamagalur, Dakshina Kannada, Udupi and Chamrajnagar districts. At the event, MSMEs can approach the MSEFC with regard to the issues related to dues for assistance. Additionally, officers of industries departments, industry association office bearers, establishments and industries who purchase from MSE manufacturers and service providers can participate in this event.
The event will take place at the Vidya Vikas Engineering & Technology Institution in Alanahalli, Mysuru and will be inaugurated by Gunjan Krishna, Commissioner of MSME Directorate, Government of Karnataka. During the event, the Facilitation Council will guide MSE’s in recovery of their dues from Medium and Large Industries, PSUs, State and Central Government Departments towards supplies made to them. These dues generally affect the MSE’s working capital, eventually resulting in sickness and closure of these small businesses. With this in mind, the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006, contained provisions to deal with cases of delayed payment to MSEs.
Under this, the defaulting buyer is liable to pay compound interest with monthly interests to the supplier on the amount at three times the bank rate notified by the Reserve Bank. This happens when the buyer fails to make a payment to the supplier for the supply of goods or services within 45 days of acceptance of the same, or the deemed day of acceptance. Further, the Government of Karnataka has established four Micro and Small Enterprise Facilitation Councils (MSEFC) for settlement of such disputes.