Payment crisis faced by micro small and medium enterprises (MSME) is still a big concern. A large number of companies whom we met in the one and a half years as part of our survey said that one of the major reasons for their crisis was the payment default by large companies. The defaulters include mini-Ratna public sector institutions. Even those mid-sized companies which procured orders from cash-rich public sector institutions face different kinds of concerns. Once their multi-crore order is ready for delivery, the principal company which placed the order has to come for an inspection. This inspection is delayed for several months, keeping on hold the entire work, on which the company has spent a huge sum. It hampers the money flow, increases the cost of capital and other consequent ...
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