DPE to monitor onboarding of CPSEs on TReDS portal; CPSEs to ensure onboarding of MSE …

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)

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