NEW DELHI: Procurement from micro and small enterprises by the central public sector enterprises (CPSEs) has risen in the last six months with total dues to suppliers more than doubling to Rs 5,096.53 crore in October, the government said on Tuesday.
Of the total dues in October, micro and small enterprises (MSEs) have been paid Rs 4,044.10 crore in the month, the Ministry of Micro, Small & Medium Enterprises said in a release.
The total dues showing the total procurement and transactions from MSEs has gone up over two times to Rs 5,096.53 crore in October from Rs 2,346.82 crore in May this year, according to the data released by the ministry.
The ministry released the figures of procurement and payment to MSEs which are reflected on the Samadhan Portal, by the central public sector enterprises (CPSEs).
“The rise in CPSEs’ business with MSEs in last six months also shows bigger capital expenditure by CPSEs. Also, more and more payments flowing to the MSEs from CPSEs every month shows liquidity flow at both fronts: CPSEs and MSEs,” an official statement said.
The ministry attached a table showing monthly rise in procurement, monthly rise in payments to MSMEs and fall in the ratio of pendency of payments.
It also said that the pending payments are only to the tune of one-fifth against the procurement and are mostly within 45 days; thus, forming part of normal business.
The total dues showing the total procurement and transactions from MSEs has gone up over two times in October 2020 compared to May, 2020 from about Rs 2,346.82 crore to about Rs 5,096.53 crore.
Out of Rs 2,346.82 crore, CPSEs made payment to the tune of Rs 1,785.85 crore in the month of May whereas payment of Rs 4,044.10 crore was made by the enterprises out of Rs 5,096.53 crore in October, the data showed.
Payments to MSEs have also gone up in the same proportion from about 76 per cent in May to about 80 per cent in October.
“The pending dues at the end of a month, during all these months, is only around one-fifth of the total transaction which is in the normal course of business. Actually, this proportion has also been coming down in last six months from about 24 per cent to about 20 per cent during the period,” the statement said.
The ministry of MSME further said that with the experience of last six months, it can be said that the CPSEs are very pro-active in procuring from the MSEs. They have also co-operated with the ministry of MSME in reporting the details on new reporting format developed on the Samadhan portal after May 2020.
Of the total dues in October, micro and small enterprises (MSEs) have been paid Rs 4,044.10 crore in the month, the Ministry of Micro, Small & Medium Enterprises said in a release.
The total dues showing the total procurement and transactions from MSEs has gone up over two times to Rs 5,096.53 crore in October from Rs 2,346.82 crore in May this year, according to the data released by the ministry.
The ministry released the figures of procurement and payment to MSEs which are reflected on the Samadhan Portal, by the central public sector enterprises (CPSEs).
“The rise in CPSEs’ business with MSEs in last six months also shows bigger capital expenditure by CPSEs. Also, more and more payments flowing to the MSEs from CPSEs every month shows liquidity flow at both fronts: CPSEs and MSEs,” an official statement said.
The ministry attached a table showing monthly rise in procurement, monthly rise in payments to MSMEs and fall in the ratio of pendency of payments.
It also said that the pending payments are only to the tune of one-fifth against the procurement and are mostly within 45 days; thus, forming part of normal business.
The total dues showing the total procurement and transactions from MSEs has gone up over two times in October 2020 compared to May, 2020 from about Rs 2,346.82 crore to about Rs 5,096.53 crore.
Out of Rs 2,346.82 crore, CPSEs made payment to the tune of Rs 1,785.85 crore in the month of May whereas payment of Rs 4,044.10 crore was made by the enterprises out of Rs 5,096.53 crore in October, the data showed.
Payments to MSEs have also gone up in the same proportion from about 76 per cent in May to about 80 per cent in October.
“The pending dues at the end of a month, during all these months, is only around one-fifth of the total transaction which is in the normal course of business. Actually, this proportion has also been coming down in last six months from about 24 per cent to about 20 per cent during the period,” the statement said.
The ministry of MSME further said that with the experience of last six months, it can be said that the CPSEs are very pro-active in procuring from the MSEs. They have also co-operated with the ministry of MSME in reporting the details on new reporting format developed on the Samadhan portal after May 2020.
