DPE to monitor onboarding of CPSEs on TReDS portal; CPSEs to ensure onboarding of MSE vendors as well
New Delhi, Jan 29 (KNN) The Department of Public Enterprises (DPE), Ministry of Heavy Industries and Public Enterprises has been mandated to monitor the onboarding of all Central Public Sector Enterprises (CPSEs) on Trade Receivable Discounting System (TreDS) portal and display the details of registration “prominently” on their websites. The CPSEs have also been directed to ensure that their MSE vendors are also registered on TReDS platform.
TreDS is an online bill discounting platform that helps cash-starved MSMEs raise funds by selling their trade receivables to corporates.
In a directive to the CPSEs (accessed by KNN India), the DPE said, “…DPE has been given the mandate to monitor the onboarding of all CPSEs on TReDS portal vide Ministry of MSME notification dated 2.11.2018. Though a number of CPSEs have already registered on TReDS portal, there are still some CPSEs that are yet to register.”
The CPSEs have been directed to register themselves on TReDS portal immediately and display the details of registration prominently on the website of CPSE.
The directive not only mandates the CPSEs to register on TReDS portal, it has also asked them to ensure mandatory onboarding of their MSEs vendors also on TReDS portal.
The communication from Rajesh Kumar Chaudhry, Additional Secretary, DPE, further stated that, “In order to enable the MSEs to avail the benefit of TReDS portal, the CPSEs will ensure that after the delivery of goods or rendering of services, the decision on acceptance/rejection of the goods and the respective bills/invoices will be taken within 15 days of the delivery of the goods/rendering of services.”
This is in line with Section 2 (ii) of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, wherein it is provided that in case no objection is made by the buyer regarding acceptance of goods and services within 15 days from the date of delivery of the goods or the rendering of services, it would be treated as “deemed acceptance”.
It is now must for the CPSEs to ensure that the payment of MSE vendor be made using online mode within the stipulated time period of the contract and not more than 45 days in any case, as provided in the Section 15 of the MSMED Act, 2006.
In a move that would give relief to MSMEs battling problems due to delayed payments from their buyers, DPE has asked the CPSEs that the information with regard to onboarding on TReDS Portal by CPSEs as well as their MSE vendors, the CPSE-wise pending payment and the payments to MSEs beyond 45 days’ period will be uploaded on weekly basis on DPE’s website http://www.dpe.gov.in — Online Applications – MSME Support and Outreach Campaign.
The concept of TReDS to facilitate the financing of trade receivables of MSMEs was introduced by the Reserve Bank of India (RBI) in 2014.
Accordingly, the RBI, in 2017, issued licence to three players: Receivables Exchange of India Ltd (RXIL), a joint venture between Small Industries Development Bank of India (SIDBI) and National Stock Exchange of India Limited (NSE); Invoicemart, promoted by A Treds Ltd (a joint venture of Axis Bank and mjunction services); and M1Xchange, promoted by Mynd Solutions Private Limited. (KNN Bureau)