Government plans central role in MSME payments dispute resolution

The micro, small and medium enterprises (MSME) ministry is exploring a plan for the Centre to have powers to empanel private online dispute resolution (ODR) firms to address delayed payments cases, according to two officials aware of the matter.

- Manas Pimpalkhare [e-mail]

In June this year, the ministry launched a dedicated ODR portal for MSMEs to quickly resolve delayed payment disputes. The ODR portal aims to help small business file claims digitally, monitor their cases and recover their dues from large firms, governments and public sector units in a transparent and efficient manner. Under the existing law, state governments have the powers to empanel private ODR firms.

Now, the MSME ministry is considering a similar dispensation for the central government as well, allowing it to also empanel private ODR service providers, the officials cited earlier said on the condition of anonymity.