Government Places Detailed, Data-Backed Reply
Punjab Newsline, New Delhi-
Reinforcing his focus on strengthening India’s MSME ecosystem, Rajya Sabha MP Kartikeya Sharma raised the critical issue of delayed payments to Micro, Small and Medium Enterprises in the Rajya Sabha and sought clear accountability and systemic solutions to ease working capital stress faced by small businesses.
Through a Starred Question, Sharma asked whether the Government has assessed the scale of delayed payments owed to MSMEs by large corporates, CPSEs, and government departments; the status of pending cases on the MSME Samadhaan portal; steps being taken to deter chronic defaulters; and measures to prevent MSME closures, job losses, and supply-chain disruptions.
Responding in the House, the Government presented a detailed, data-driven reply outlining strong legal, financial, and technology-enabled interventions already in place.
As per official data, cumulative dues owed by CPSEs to MSMEs stood at ₹17,400.13 crore, of which ₹14,744.54 crore has already been paid, leaving pending dues of ₹2,655.60 crore as of 4 February 2026. The Government also shared year-wise data on pending applications and amounts under process with MSME Facilitation Councils, highlighting sustained institutional action to resolve delayed payment disputes.
The Government informed the House that to ensure timely payments, multiple enforcement mechanisms are operational. Payments to micro and small enterprises beyond 45 days are now allowed as income tax deductions only on actual payment. Companies delaying MSME payments are required to file half-yearly disclosures detailing outstanding dues and reasons for delay, strengthening transparency and compliance. Under existing law, delayed payments attract interest at three times the RBI bank rate, compounded monthly.
To further accelerate dispute resolution, a technology-driven Online Dispute Resolution mechanism has been launched, with all new delayed payment cases now being filed through a digital platform to ensure faster, cost-effective, and transparent outcomes.
On easing working capital stress, the Government highlighted the sharp expansion of invoice financing through the Trade Receivables Discounting System. Financing volumes under TReDS have grown significantly over the last three years, enabling MSMEs to access quicker and cheaper liquidity. Budget announcements have further strengthened this ecosystem by mandating TReDS usage for MSME purchases by CPSEs, introducing credit guarantee support for invoice discounting, and linking government procurement data with financiers.
Additional measures highlighted include credit-linked subsidies for new micro enterprises, equity infusion through dedicated MSME funds, expanded credit guarantee coverage, higher loan limits for exporter MSMEs, and customised credit cards for micro enterprises registered on the Udyam portal.
Welcoming the detailed reply, Shri Kartikeya Sharma noted that timely payments are central to MSME survival, employment generation, and supply-chain stability.“MSMEs do not fail because of lack of capability, they fail because of cash-flow stress. Strong enforcement, transparent systems, and easy access to working capital are essential to protect jobs and sustain growth,” he said. Sharma reiterated that consistent parliamentary oversight and data-backed policymaking are key to ensuring that MSMEs receive timely payments and continue to remain the backbone of India’s economy.