Topic of the Day - MSME Samadhaan

UPSC Exam Preparation: Topic of the Day – MSME Samadhaan

The Ministry of Micro, Small & Medium Enterprises (MSME) sector in India provides employment to almost 10 crore people and has a potential to do more. It has provided 80 percent of total employment with only 20 per cent of total capital investment. Payment delay is a major issue for the Micro, small and medium enterprises as they do not hold sufficient capital. The delays in payments have made many MSMEs as Non Performing Assets in the past. Timely payment makes them viable and vibrant. So, in case of delays, they faces huge problem to sustain their business.  In an effort to support the sector, the Union government launched MSME Samadhaan. The delayed payment portal –MSME Samadhaan was launched with a vision to empower the micro and small entrepreneurs across the country to directly register their cases relating to delayed payments by Central Ministries / Departments / CPSEs / State Governments.

  • The portal will greatly facilitate the monitoring of the delayed payment in a more effective manner.
  • The initiative will exert moral pressure on the defaulting organization as the information on the portal will be available in public domain.
  • The Micro Small and Medium Enterprises will also be empowered to access the portal and monitor their cases.
  • The Portal will give information about the pending payment of MSEs with individual CPSEs / Central Ministries, State Governments, etc.
  • The CEO of PSEs and the Secretary of the Ministries concerned will also be able to monitor the cases of delayed payment and issue necessary instructions to resolve the issues in a speedy manner.
  • Cases can be registered by the enterprises in case they do not get payment within 45 days from PSUs or government agencies.


The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains provisions to deal with cases of delayed payment to Micro and Small Enterprises (MSEs). As per the provisions, the buyer is liable to pay compound interest with monthly rests to the supplier on the amount at three times of the bank rate notified by Reserve Bank in case he does not make payment to the supplier for the supplies of goods or services within 45 days of the day of acceptance of the goods/service or the deemed day of acceptance.


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