MSME Act: proposed changes to ensure expeditious payments

22 Jul 2024 CW Team

Government plans to amend the Micro, Small and Medium Enterprises (MSME) Development Act, 2006 to ensure quicker payments to MSMEs. The proposed amendments aim to enhance the effectiveness of the 45-day payment rule by introducing online dispute resolution for settling delayed payment disputes.

The existing law mandates a 45-day period for buyers to pay their MSME suppliers. If payments are not made within this timeframe, buyers are required to pay the outstanding amount along with interest, calculated at three times the Reserve Bank of India's bank rate. The government believes the current law does not adequately address the contemporary challenges faced by MSMEs.

A government official, who preferred to remain anonymous, mentioned that the amended Act will include concepts such as energy efficiency and decarbonization, reflecting the developmental direction needed for MSMEs. The government is also expected to align income tax provisions with the proposed changes.

Additionally, the government plans to establish centres of excellence to support MSME exports. A report from NITI Aayog earlier this year revealed that only about 0.95% of the 15.8 million registered MSMEs export their goods and services. The new centres are intended to bridge this information gap and facilitate collaboration between MSMEs, the Department of Science & Technology, and the Council of Scientific and Industrial Research to promote and adopt best technological practices. These initiatives are among the key priorities for the ministry's first 100 days. An official stated that the 100-day action plan is designed to be forward-looking and to help achieve the 2047 Viksit Bharat goals.

Infrastructure Energy

28 Aug 2025

REC Hosts 56th AGM, Highlights Record Growth and Sustainability

REC Limited conducted its 56th Annual General Meeting (AGM) today through video conferencing, chaired by Jitendra Srivastava, Chairman & Managing Director. The meeting highlighted the company’s record operational and financial performance during the year, along with its strong focus on sustainability and ESG-led initiatives.Jitendra Srivastava, Chairman & Managing Director, in his address noted that REC achieved significant milestones during the year, strengthening its position as a performance-driven public financial institution. Loan sanctions stood at Rs 3.37 trillion, with disbur..

ADGBR Reviews Road Projects under Project Vartak

Additional Director General Border Roads (ADGBR) Jitendra Prasad conducted a four-day review of ongoing road and bridge construction works under Project Vartak in the area of responsibility (AoR) of the 42 Border Roads Task Force (BRTF) from 19 to 22 August.Prasad inspected key infrastructure projects including the Balipara–Charduar–Tawang (BCT) road, Sela–Chabrela–Banga Janga Gonpa road, Banga Janga Gonpa–Lagamche GG road, the Sela tunnel, and multiple roads in the Nelya sector.At various construction sites, project officials briefed him on project scope, progress, timelines, and op..

Nitin Gadkari Launches Three Highway Projects in Madhya Pradesh

Union Minister for Road Transport and Highways, Nitin Gadkari, laid the foundation stone for three National Highway (NH) projects in Madhya Pradesh on 24 August. According to the Ministry of Road Transport and Highways (MoRTH), the projects are designed to reduce travel time, ease congestion, enhance road safety, and improve connectivity across key corridors.The first project covers the four-laning of the 17.87 km Amazhar–Barela stretch, completing the Jabalpur Ring Road. The upgrade will divert heavy vehicles away from the city, reduce accident risks, and ensure smoother connectivity from A..