MSME Ministry urges corporates to clear sector's dues on priority basis

New Delhi [India], September 14 : Union Ministry of Micro, Small and Medium Enterprises (MSME) has impressed upon private sector enterprises of the country to take measures to release the payment of MSME dues on priority, said the ministry here on Monday.
"Union Ministry of Micro, Small and Medium Enterprises has now impressed upon the private sector enterprises of the country to take measures for release of payment of MSME dues on priority. These payments will bring a smile on millions of faces whose only source of livelihood is the enterprises in the MSME sector," it said in a statement.
The ministry further said it has also "reminded them" of the legal provisions under the MSME Development Act, 2006, which mandate that the payment of MSME receivables is made within 45 days.
The ministry further said it has "directly taken up" the issue with the top 500 corporates groups of the country.
"Ministry has written e-letters to the owners, CMDs or top executives of these five hundred corporates. While conveying its support and solidarity in these difficult times, Ministry has strongly taken up the issue of pending payments of MSMEs," it added.
The ministry also urged corporates to join the Trade Receivable Discounting System (TReDS) platforms to "improve cash flow to MSMEs".
"Ministry has also reminded the corporates that it has been made mandatory for the corporate entities to file half-yearly returns with the Ministry of Corporate Affairs on their dues to MSMEs. Corporates have been requested to file returns if not doing so already," it said further.