Question : DISCONTINUATION OF CENTRALISED PAYMENT SYSTEM

(a) whether the Government proposes to discontinue the centralised payment system in Delhi, Mumbai, Kolkata and Chennai even to MSE units against their supplies to Government departments located all over the country under Director General Supply and Disposal Rate Contract System;

(b) if so, the details thereof indicating the objective of MSME Act 2006, which envisages payment to micro small units in 30 days;

(c) whether the direct payment against supplies on DGS & D rate contract imposes a condition on the buying department to release it in 30 days or the MSE units shall be eligible to invest as stipulated in MSME Act 2006; and

(d) if so, the details thereof?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

a) to d): Yes, Madam. Based on the recommendation of Committee on Public Procurement (CoPP) the Government has issued a Correction Slip in the year 2013, whereby, indenting departments have been authorized to make payment directly to the suppliers including MSE Units against their supplies within sixty days.