Government schemes and programmes are very important for the IAS exam. Schemes related to economy/industry, particularly, concerning the Micro, Small and Medium Enterprises (MSME) are very relevant for the UPSC exam. In this article, you can read all about the MSME Samadhaan portal of the Government of India.
Learn what are micro, small and medium enterprises in the linked article.
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MSME Samadhaan UPSC Notes:- Download PDF Here
MSME Samadhaan is an online portal where MSMEs can file their applications online regarding delayed payments.
- The application can be made by the supplier MSE unit against the buyer of goods/services before the concerned Micro & Small Enterprises Facilitation Council (MSEFC) of his/her state or union territory.
- The portal has been developed by the Ministry of MSME. However, it does not take action on the applications filed on the MSME Samadhaan portal directly. It only forwards these applications to the concerned MSEFC. It is the MSEFC that takes appropriate action in this regard. The MSEFC will also consider physical applications and a portal is only an option.
- To file on the MSME Samadhaan portal, it is mandatory for the business to have a Udyog Aadhar Memorandum.
- The enterprise should also keep a record of all formal purchase orders from customers and delivery proofs for all orders.
- The issue of delayed payments to MSME was addressed in the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006.
Get all the important government schemes important for the UPSC examination and other competitive examinations in the linked article.
MSMED Act, 2006
The MSMED Act has provisions to deal with cases of delayed payments to micro, small and medium enterprises.
- Under this Act, state governments should establish Micro and Small Enterprise Facilitation Councils (MSEFC) for settling disputes related to delayed payments on getting the application from concerned parties.
- Under the provisions of the Act, the buyer is liable to pay compound interest with monthly rests to the supplier on the amount at thrice the bank rate notified by the RBI in case he does not make payment to the supplier for the supplies within 45 days of the day of acceptance of the goods/service or the deemed day of acceptance.
- The MSEFC should decide the case within ninety days of getting the reference.
Learn about important acts in India in the linked article.
Background of MSME Sector
The MSME sector in the country faces a lot of problems and one such persisting problem is significant delays in receiving payments from buyers, particularly public sector undertakings (PSUs). This causes unsustainable working capital cycles for small and medium enterprises. This is also one of the major reasons for them to turn into non-performing assets (NPAs).
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MSME Samadhaan Portal Features
The features of the MSME Samadhaan portal are given below:
- MSMEs can file online applications on the portal for delayed payments.
- They can check the status of their applications on the portal.
- The website will provide information about the pending payment of MSMEs 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 under their jurisdiction and issue necessary instructions to resolve the issues.
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