The Ministry of Railways has expressed serious concerns over delayed payments to suppliers, particularly micro, small and medium enterprises (MSMEs), and directed the zonal railways, production units and others to expedite the disbursal of dues.
The Railway Board, in an order, said that as part of the stimulus package rolled out by the Union government last month, MSME receivables from Government and Central Public Sector Enterprises (CPSEs) would have to be released within 45 days. “Delayed payments to suppliers, especially MSMEs, have been a matter of grave concern…timely clearance of dues to MSMEs is essential to ensure financial viability of this sector, which is essential for employment generation and economic development of India,” the order said.
Pointing out that several representations had been received from the Ministry of MSME and the Department of Expenditure, urging the Ministry of Railways to take steps to ensure that dues to suppliers were not held up by railway units and CPSEs under the control of the Railways, the Board said that an exclusive portal — MSME Samadhaan — had been created, where members of the MSME sector could register their grievances or file applications on delayed payments.
Drawing the attention of general managers and heads of major Railways establishments to the MSMED Act, 2006, which made it obligatory for the paying authority to clear dues to micro and small enterprises within a strict timeline, failing which penal interest was liable to be paid, the Railway Board said that delay in clearance of dues will not be acceptable.
