Centre May Empanel Private ODR Firms for MSME Dues
Why in the news
The MSME Ministry is weighing a change so the Centre can appoint private ODR firms and speed up recovery of dues.
| Aspect | Now | Proposed |
|---|---|---|
| Empanelment | Only states, via MSEFCs under the MSME Development Act, 2006 | Centre too |
| Performance | 250,000+ pending; under 10% settled mutually | Stronger resolution where private ADR bodies are scarce |
Key facts
- MSME ODR Portal launched June 2025: digital claims against large firms, PSUs and government bodies.
- Proposal still in progress; implementation may take time.
Exam angle
- Law cited: MSME Development Act, 2006.