The data released by the ministry showed that there has been over two-fold increase in transactions between PSUs and MSMEs in the last six months
The Ministry of MSME said that going by the experience of the last six months, it can be said that CPSEs are pro-active in procuring from MSEMs
New Delhi: Pending payments by public sector undertakings (PSUs) to MSMEs are only to the tune of one-fifth against the procurement and are cleared mostly within 45 days, said the Ministry of Micro, Small & Medium Enterprises (MSME) on Tuesday. The total dues showing the total procurement and transactions from MSMEs has gone up almost two-and-a-half times in October compared to May, said the ministry. Official data showed that pendency of payments by PSUs decreased from 24 percent in May to 21 percent in October. The payments to MSMEs have also gone up in the same proportion.
Data also shows that the pending dues at the end of the various months between May and October are only around one-fifth of the total transaction which is in the normal course of business.
CPSEs pro-active in procuring from MSMEs
The Ministry of MSME said that going by the experience of the last six months, it can be said that CPSEs are pro-active in procuring from MSEMs. “They have also co-operated with the Ministry of MSME in reporting the details on new reporting format developed on the Samadhan portal after May 2020. The rise in CPSEs’ business with MSEMs in the last six months also shows bigger capital expenditure by CPSEs. Also, more and more payments flowing to the MSEMs from CPSEs every month shows liquidity flow at both fronts: CPSEs and MSEMs,” an official statement said.
“This is an outcome of pro-active policies, timely interventions and undiluted support of the government and sustained campaign and efforts made by the MSME Ministry,” it added.
Over two-fold increase in transactions between PSUs & MSMEs
The data released by the ministry showed that there has been over two-fold increase in transactions between PSUs and MSMEs in the last six months. While the total transaction at the end of May this year stood at Rs 2,346.82 crore, at the end of October, the figure went up to Rs 5,096.53 crore. The percentage of payments cleared during the various months varied between 76 percent to 79 percent.
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