The total amount stuck in delayed payment applications filed by micro and small enterprises (MSEs) has reached Rs 40,000 crore. Since the launch of MSME Samadhaan in October 2017, 1.70 lakh applications were filed to recover this amount. Only 14.7% (Rs 5,896 crore) has been recovered from 33,707 disposed cases, while Rs 8,904 crore worth of applications have been rejected. Furthermore, 15,894 applications amounting to Rs 1,995 crore have been mutually settled. Central public sector enterprises (CPSEs) were significant defaulters till the end of 2023. As of December 26, 6,167 complaints were filed against CPSEs. The top defaulters were proprietorship businesses, MSME units, and state governments. Lastly, to combat delayed payments, the government has allowed deductions to buyers under Section 43B of the Income Tax Act for expenditure incurred on payments made to MSMEs.
The Rs 40,000 Crore Struggle of MSEs in Delayed Payments
