MSME industries disagree on govt claims dues cleared

MSME industries disagree on govt claims dues cleared

The Centre is guaranteeing collateral-free loans of Rs 3 lakh to MSME industries, however, MSME minister Nitin Gadkari has said that the Central authorities, state governments, and company India collectively owe greater than Rs 5 lakh crore to micro, small and medium enterprises(MSMEs).

Data gathered by FE confirmed that the Central authorities, Central PSUs and a few state PSUs collectively owed about Rs 5 lakh crore in dues to MSMEs and state-run companies like FCI as on March 31, 2019. Since then, the Centre’s dues to FCI have elevated from Rs 1.3 lakh crore to Rs 2.55 lakh crore. Whereas NHAI had excellent dues of Rs 50,000 crore in March 2019, it’s now caught in litigation with contractors and buyers, who’re claiming Rs 78,653 crore in dues.

State energy distribution firms, which owed dues of Rs 60,000 crore to energy producers in March 2019, owe them Rs 94,000 crore as on March 31, 2020. On their half, state transport firms owed a number of 1000’s of crores to their suppliers like oil advertising and marketing firms.

In keeping with a Niti Aayog evaluation, the Central authorities departments themselves had dues of Rs 1.5 lakh crore to the trade at end-March 2019. These departments additionally owe some huge cash to service suppliers.

Nonetheless, expenditure secretary TV Somanathan on Friday stated the dues from 26 prime Central PSUs to MSMEs was solely Rs 773 crore as on March 31, 2020, as they’ve been clearing dues because the authorities launched a particular drive in September 2019. Together with defence institutions, railways and different departmental undertakings, the dues from the Centre and departmental undertakings had been lower than Rs 10,000 crore till not too long ago, he stated. “Now we have verified the overwhelming majority of those dues will not be overdue as they’re inside 45 days of working capital cycle prescribed within the MSME Act,” Somanathan added.

Former nationwide president of All India Producers Organisation KE Raghunathan stated the federal government is likely to be referring to the circumstances reported by MSME Samadhaan web site, a web-based delayed cost monitoring system. In keeping with the website, applications price Rs 10,903 crore had been filed towards Central authorities and its undertakings, amongst others. Raghunathan stated many of the MSMEs haven’t taken this route for concern of repercussions to their enterprise.

The entire dues to MSME had been roughly Rs 5.5 lakh crore as on March 31, 2020 – distributed within the ratio of 40:60 between the Central authorities (together with PSUs) and states (together with state PSUs), Raghunathan stated.

In states’ 60%, dues from state departments can be 45% and their undertakings 15%,” Raghunathan stated.

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