FTCCI calls for greater awareness of proposed MSME amendments to address delayed payments

Hyderabad, Oct 14 (TNT): The proposed amendments to the MSME Development Act could strengthen payment discipline, streamline dispute resolution and improve access to finance for micro, small and medium enterprises (MSMEs), industry representatives said at an awareness programme organised by the Federation of Telangana Chambers of Commerce and Industry (FTCCI) here on Tuesday.

The programme, organised in association with the MSME Development Office (MSME-DFO), Hyderabad,  focused on key provisions of the MSME Development (Amendments) Bill, 2026, including delayed payments, compliance requirements, mediation, arbitration and recovery of dues.

K. Madhukar Babu, Joint Director (MSME), Department of Industries, Government of Telangana, who attended as the special guest, said the proposed amendments provide mechanisms to address delayed payments, prescribe timelines for mediation and arbitration, facilitate recovery of dues and enable access to finance through Trade Receivables Discounting System (TReDS) platforms.

He said Telangana has seven Micro and Small Enterprises Facilitation Councils (MSEFCs), including one exclusively dedicated to startups. Telangana is the first state in the country to establish a separate Facilitation Council for startups, he added.

K.K. Maheshwari, President of FTCCI, said delayed payments affected MSMEs’ working capital, salary payments and business growth. He urged entrepreneurs to understand the proposed provisions and make effective use of Facilitation Councils to resolve payment disputes.

P. Krishna, Chairman of the FTCCI Industrial Development Committee, said the amendments could improve payment discipline and ensure time-bound dispute resolution. He stressed the need to create awareness among MSME entrepreneurs to bridge the gap between legislation and its practical implementation.

Dr. Gaddam Sudarshan, Founder and CEO of Shasrith Infotech Pvt. Ltd. and State Head at the German University of Digital Science for Andhra Pradesh and Telangana, explained the key provisions of the proposed amendments and their significance for the MSME sector.

The programme also covered compliance requirements, the implications of the proposed changes for MSMEs and buyers, and mechanisms for resolving payment disputes.

An interactive question-and-answer session enabled participants to seek clarifications from the MSME-DFO official.

FTCCI Senior Vice President Srinivas Garimella was among the office-bearers present.

TNT TS