Hyderabad: Outstanding dues reach Rs 10.7L Cr, FTCCI president Ravi Kumar flags critical impact on MSMEs

Hyderabad: Federation of Telangana Chambers of Commerce and Industry (FTCCI) president R. Ravi Kumar highlighted the critical impact of delayed payments on micro, small, and medium enterprises.

Citing the Global Alliance for Mass Entrepreneurship (GAME), he said the total delayed payments in 2024 reached a staggering Rs 10.7 lakh crore, with nearly 80% linked to micro and small enterprises.

“Delayed payments choke MSMEs’ growth, innovation, and job creation. Unless addressed effectively, the sector’s expansion potential will weaken,” he said.

He also pointed out that out of 2,54,360 cases filed on the Samadhan portal, only 50,803 have been disposed of, reflecting an urgent need for faster resolution.

FTCCI workshop focuses on Recovery Mechanisms

The FTCCI organised a day-long workshop on “Recovery of Delayed Payments to MSMEs” at Federation House, Red Hills. Over 100 MSME representatives attended the interactive session, which highlighted practical solutions, legal remedies, and emerging digital tools to tackle delayed payments.

Legal Remedies and Documentation Crucial

P. Krishna, Chairman of FTCCI’s Industrial Development Committee, emphasized that delayed payments directly affect cash flow, growth, and enterprise survival.

He urged MSMEs to leverage provisions under the MSMED Act, maintain proper documentation, and make use of conciliation and arbitration processes.

FTCCI also operates a dedicated Help Desk to assist entrepreneurs in these matters.

Advocate Dr. Pradeep Reddy Sarvareddy advised MSMEs to stay updated on legal frameworks, maintain robust contracts, and use legal avenues confidently without fear of damaging business relationships.

Structured Dispute Resolution & Digital Portal

J. Rajeshwar Reddy, Director of the Digital Employment Exchange of Telangana (DEET) and Joint Director, Department of Industries, Govt. of Telangana, outlined a three-step model adopted by MSE Facilitation Councils (MSEFCs)—conciliation, arbitration, and award—for faster resolution.

He also introduced the AI-powered Online Dispute Resolution (ODR) portal, set to replace the Samadhan portal, offering a single digitised platform connecting buyers, suppliers, councils, and advocates.

Panel Discussion Highlights Industry Challenges

A panel moderated by P. Krishna, including Hema Jain (CEO, Crux Management Services Pvt. Ltd.), CA Ritesh Mittal, and Prem Chand Kankaria, discussed real-life challenges.

Most delayed payment cases involve government departments, ministries, and PSUs, highlighting the need for a collaborative ecosystem between government and industry to support MSMEs.

FTCCI reaffirms commitment to MSMEs

KK Maheshwari, Senior Vice President, FTCCI, reaffirmed the Federation’s commitment to assisting MSMEs in resolving delayed payments and strengthening their growth prospects.