Now Reading: Lok Sabha Passes MSME Bill to Speed Up Payments, Resolve Disputes
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Lok Sabha Passes MSME Bill to Speed Up Payments, Resolve Disputes
The Lok Sabha on Friday approved the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, without a debate amid Opposition protests. The Bill had already cleared the Rajya Sabha on August…
The Story in Brief
The Lok Sabha on Friday approved the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, without a debate amid Opposition protests. The Bill had already cleared the Rajya Sabha on August 3. It mandates mediation of payment disputes within 90 days and requires courts to release at least 50 per cent of the disputed awarded amount to MSMEs if an appeal remains pending for over six months.
The government said the amendments aim to improve ease of doing business and liquidity for small firms. Union Minister Jitan Ram Manjhi noted that outstanding credit to MSMEs rose from Rs 10 lakh crore in 2014-15 to over Rs 38.35 lakh crore now. The Bill also provides for recovery of settlement agreements between buyers and MSME suppliers.
The Indian Opinion
This Bill is a practical fix for a chronic pain point: delayed payments that choke small businesses. The automatic 50 per cent release after six months of appeal is the sharpest new tool. But the real test is enforcement. Will the mandated 90-day mediation timeline hold up in a clogged legal system? Watch the first set of arbitration orders due one year from now. Only those numbers will tell if this is a true lifeline or just another clause on paper.
Sources (2): ndtv.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
