Parliament Question: Delay in Payment to MSMEs

GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION NO. 3245 TO BE ANSWERED ON 12.03.2026 DELAY IN PAYMENT TO MSMEs 3245. DR. SHASHI THAROOR: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) whether the Government is aware of the problem of delayed payments to Micro, Small and Medium Enterprises (MSMEs), including the estimated amount of receivables currently outstanding and the impact of such delay on cash flows of micro and small enterprises, if so, the details thereof; (b) the status of utilisation and effectiveness of existing mechanisms such as the MSME Samadhaan portal and other dispute resolution forums in securing timely payments; (c) the uptake and outcomes of the recently launched Online Dispute Resolution (ODR) portal for delayed payment disputes, including the number of cases resolved and average resolution time; and (d) whether the Government proposes to introduce further reforms to ensure faster recovery of dues for MSMEs, and if so, the details thereof? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a): Delayed payments to Micro and Small Enterprises (MSEs) is one of the concerns for the viability and growth of the MSMEs and poses challenge for availability of working capital. Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 under Section 15–23 of Chapter V mandates payment to the MSEs to be made within 45 days. Under the provisions of the MSMED Act, 2006, Micro & Small Enterprises Facilitation Councils (MSEFCs) have been set up in the States/UTs to deal with cases of delayed payments of the Micro and Small Enterprises (MSEs). The details of Ministry -wise dues reported by CPSEs on Samadhaan Portal till the end of February, 2026 is given at Annexure. For filing and monitoring pending payment cases by MSEs against the buyers of goods and services, Government launched SAMADHAAN Portal on 30.10.2017. The filed cases are then referred to the concerned MSEFC for resolution of dispute between the MSE seller and the buyer as per relevant provision made under the applicable laws. (b): As per the data available on MSME SAMADHAAN Portal, the applications filed by Micro and Small Enterprises (MSEs) are 2,56,892. Out of this, a total of 1,60,223 cases have been decided by Micro and Small Enterprise Facilitation Councils (MSEFCs). Thus, the percentage of applications filed to the cases disposed off is approximately 62%.: 2 : (c): For efficient resolution of the pending payment cases, Government has launched Online Dispute Resolution (ODR) Portal on 27.06.2025 as a digital, technology-enabled mechanism to strengthen the existing SAMADHAAN Portal, with the objective of ensuring speedy, cost-effective, and transparent resolution of delayed payment disputes involving MSE. All fresh cases related to delayed payments filed by MSEs on the MSME ODR portal with effect from 15.10.2025. Till date, total 14,814 cases have been filed on this Portal, out of which 26 cases have been resolved. (d): To address the issue of working capital, Government of India vide notification S.O. 4845(E) dated 07.11.2024 has directed CPSEs and all companies with the turnover of Rs. 250 Crore or more to on-board the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers. In order to unlock the potential of working capital for MSMEs through the TReDS platforms, the following four key measures have been announced in Budget Announcements 2026-27: i. Mandate TReDS as the settlement platform for all purchases from MSMEs by CPSEs, setting a benchmark for other Corporate. ii. Introduce CGTMSE-backed credit guarantee support for invoice discounting on TReDS platform. iii. Integrate GeM with TReDS to enable information-sharing with financiers on government MSME purchases, facilitating faster and cheaper credit. iv. Introduce TReDS receivables as asset-backed securities to deepen the secondary market, improve liquidity, and speed up settlements. ******Annexure Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 3245 for answer on 12.03.2026. Ministry -wise dues reported by CPSEs on Samadhaan Portal till the end of month February, 2026 Cumulative dues Amount Paid Total Pending S. reported Name of Ministry reported dues reported No. towards MSMEs (in Rs. Crore.) (in Rs. Crore.) (in Rs. Crore.) 1 Ministry of Petroleum and Natural Gas 10,179.49 9,308.58 870.91 2 Ministry of Defence 5,300.82 5,251.81 49.01 3 Ministry of Power 1,088.88 919.14 169.73 4 Ministry of Steel 1,072.37 865.14 207.23 5 Ministry of Heavy Industries 1,001.9 952.25 49.65 6 Ministry of Coal 702.33 306.1 396.23 7 Ministry of Communications 411.5 109.33 302.17 8 Ministry of Atomic Energy 394.3 360.54 33.76 9 Ministry of Consumer Affairs, Food and Public 233.32 164.62 68.71 Distribution 10 Ministry of Chemicals and Fertilizers 204.74 125.52 79.22 11 Ministry of Shipping 144.37 102.72 41.66 12 Ministry of Railways 86.09 83.04 3.05 13 Ministry of Tourism 84.22 20.72 63.5 14 Ministry of Electronics and Information 66.99 40.66 26.33 Technology 15 Ministry of Mines 39.31 38.65 0.66 16 Ministry of Social Justice and Empowerment 30.09 26.25 3.84 17 Ministry of Finance 28.55 23.78 4.77 18 Ministry of Health and Family Welfare 20.47 11.2 9.27 19 Ministry of Information and Broadcasting 16.02 2.34 13.68 20 Ministry of Science and Technology 11.47 11.35 0.13 21 Ministry of Textiles 9.87 2.14 7.73 22 Ministry of Commerce and Industry and 3.86 3.82 0.05 Industry 23 Ministry of Human Resource Development 3.31 0 3.31 24 Ministry of Ayurveda, Yoga and Naturopathy, 2.2 0.45 1.75 Unani, Siddha and Homoeopathy (AYUSH) 25 Ministry of Housing and Urban Affairs 0.91 0.91 0 26 Ministry of New and Renewable Energy 0.12 0.12 0 27 Ministry of Space 0.11 0.11 0 28 Ministry of Civil Aviation 0.1 0 0.1 29 Ministry of Minority Affairs 0.09 0.09 0 30 Ministry of Agriculture and Farmers Welfare 0.06 0.06 0 31 Ministry of Micro, Small and Medium 0.01 0 0.01 Enterprises 32 Ministry of Road Transport and Highways 0.01 0.01 0 Grand Total 21,137.88 18,731.45 2,406.46