State adopts RBI-initiated electronic platform to facilitate MSME dealings

Chief minister Devendra Fadnavis directed all departments in the state to adopt the platform and formulate a Standard Operating Procedure (SOP) in line with the working systems and operational requirements of each individual department

MUMBAI: The state cabinet on Tuesday cleared a proposal to adopt the Trade Receivables Discounting System (TReDS platform) for clearing pending payments of micro, small and medium entrepreneurs and contractors associated with the Public Works Department (PWD).

State adopts RBI-initiated electronic platform to facilitate MSME dealings

Chief minister Devendra Fadnavis directed all departments in the state to adopt the platform and formulate a Standard Operating Procedure (SOP) in line with the working systems and operational requirements of each individual department. The CM has set up a committee under the chairmanship of chief secretary Rajesh Aggarwal for this purpose.

TReDS is a joint initiative of the central government and the Reserve Bank of India. Its objectives include promoting financial inclusion and supporting initiatives such as Make in India and Skill India by providing affordable and timely finance to micro, small and medium enterprises.

The system is meant to bring in greater efficiency and transparency and help streamline the PWD’s payment processes. Through the platform, registered MSME contractors will gain easier access to the working capital they require, enabling them to expand operations, upgrade technology, and enhance competitiveness. The platform will help MSME contractors overcome working capital constraints and ensure timely completion of contracts.

In the next phase, the e-tendering and e-procurement portals will be integrated with the TReDS Platform. This will enable invoice submission, verification, and discounting at a single point.