Rajasthan MSME councils face 3,900 pending payment disputes

More than 3,900 payment disputes involving micro, small, and medium enterprises (MSMEs) are pending before facilitation councils in Rajasthan, highlighting persistent delays in resolving cases and releasing funds. Industry representatives say delayed payments are a major hurdle for small businesses facing tight working capital, with most defaulting buyers being government departments, including power distribution companies, PWD, PHED, and the medical and health department. The number of facilitation councils has grown from one to 14, and District Industries Centre general managers now hear disputes previously handled by collectors. Officials note over 60% of disputes involve government agencies, and councils appear reluctant to issue orders against them quickly. Under MSME rules, payments are due within 45 days of supply, but disputes often arise over claims of unmet specifications.