{"id":36006,"date":"2026-08-17T18:17:42","date_gmt":"2026-08-17T12:47:42","guid":{"rendered":"https:\/\/niir.org\/blog\/?p=36006"},"modified":"2026-09-03T12:58:32","modified_gmt":"2026-09-03T07:28:32","slug":"msmed-amendment-bill-2026","status":"publish","type":"post","link":"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/","title":{"rendered":"MSMED Amendment 2026 Passed: Your Buyer Has 45 Days to Pay \u2014 Or You Can Sue in 8 Months"},"content":{"rendered":"<p>Parliament passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, on August 7. Twenty years after the original MSMED Act, India has finally given small manufacturers the legal teeth to collect what they are owed. According to the <a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2296358\">PIB press release on the MSMED Amendment Bill<\/a>, the amendment overhauls <strong>delayed payment enforcement<\/strong>, dispute resolution timelines, Udyam registration permanence, and compliance penalties. For the MSME entrepreneur who has watched \u20b920\u201350 lakh in receivables age beyond 90 days while your working capital bleeds out \u2014 this is the most consequential piece of legislation for your business in two decades.<\/p>\n<p>The buyers who have relied on delay as a business strategy are on notice.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87_1 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#The_Problem_This_Bill_Solves_Delayed_Payments_Are_Killing_MSMEs_Silently\" >The Problem This Bill Solves: Delayed Payments Are Killing MSMEs Silently<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Explore_proven_business_ideas_with_high_success_potential\" >Explore proven business ideas with high success potential<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Five_Changes_That_Directly_Affect_Your_Business\" >Five Changes That Directly Affect Your Business<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Change_1_Mandatory_CPSE_Payments_Through_TReDS\" >Change 1: Mandatory CPSE Payments Through TReDS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Change_2_%E2%80%94_Hard_Dispute_Resolution_Timeline\" >Change 2 \u2014 Hard Dispute Resolution Timeline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Change_3_%E2%80%94_District_Collector_Recovery\" >Change 3 \u2014 District Collector Recovery<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Change_4_%E2%80%94_Multiple_MSEFCs_Per_State\" >Change 4 \u2014 Multiple MSEFCs Per State<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Change_5_%E2%80%94_Decriminalised_Non-Compliance\" >Change 5 \u2014 Decriminalised Non-Compliance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#What_You_Must_Do_Right_Now_%E2%80%94_Practical_Steps\" >What You Must Do Right Now \u2014 Practical Steps<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#The_Hard_Numbers_What_the_Amendment_Saves_You\" >The Hard Numbers: What the Amendment Saves You<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#5_Manufacturing_Businesses_That_Benefit_Most_From_This_Law\" >5 Manufacturing Businesses That Benefit Most From This Law<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Auto_Component_Manufacturing_for_CPSE_and_Defence_OEMs_%E2%82%B930%E2%80%9360_Lakh\" >Auto Component Manufacturing for CPSE and Defence OEMs (\u20b930\u201360 Lakh)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Institutional_Garment_Supply_to_Government_Bodies_%E2%82%B925%E2%80%9345_Lakh\" >Institutional Garment Supply to Government Bodies (\u20b925\u201345 Lakh)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#View_Full_Project_Details_Textile_Garment_Industry_Handbook\" >View Full Project Details: Textile &amp; Garment Industry Handbook<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Packaging_Materials_for_CPSE_Supply_Chains_%E2%82%B918%E2%80%9330_Lakh\" >Packaging Materials for CPSE Supply Chains (\u20b918\u201330 Lakh)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Related_Article_Biodegradable_Packaging_Manufacturing_Business_in_India_Cost_Profit_Project_Report\" >Related Article: Biodegradable Packaging Manufacturing Business in India: Cost, Profit &amp; Project Report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Food_Processing_for_Government_Canteens_and_Mid-Day_Meal_Programmes_%E2%82%B98%E2%80%9325_Lakh\" >Food Processing for Government Canteens and Mid-Day Meal Programmes (\u20b98\u201325 Lakh)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Get_Detailed_Insights_from_This_Book_Handbook_on_Fruits_Vegetables_Food_Processing_with_Canning_Preservation\" >Get Detailed Insights from This Book: Handbook on Fruits, Vegetables &amp; Food Processing with Canning &amp; Preservation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Industrial_Safety_Equipment_Assembly_for_CPSEs_Under_%E2%82%B910_Lakh\" >Industrial Safety Equipment Assembly for CPSEs (Under \u20b910 Lakh)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#NPCS_Structure_Your_MSME_for_the_New_Legal_Environment\" >NPCS: Structure Your MSME for the New Legal Environment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#Register_Today_%E2%80%94_The_Law_Now_Works_in_Your_Favour\" >Register Today \u2014 The Law Now Works in Your Favour<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_Problem_This_Bill_Solves_Delayed_Payments_Are_Killing_MSMEs_Silently\"><\/span><strong>The Problem This Bill Solves: Delayed Payments Are Killing MSMEs Silently<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are many reasons why MSME businesses fail, and most of the failures do not stem from a poor product. They begin with a buyer who doesn&#8217;t pay.<\/p>\n<p>As per data from <a href=\"https:\/\/msme.gov.in\">Ministry of MSME on delayed payment complaints<\/a>, delayed payments by large buyers and CPSEs are on number 1 spot in consistently being blamed for MSME business failure. The MSME Samadhaan portal receives applications worth hundreds of crores in disputed receivables every year. In the pre-revolutionary days, it would take 18-36 months to get a resolution \u2014 time by then when cash-strapped MSMEs would either close their businesses or get a loan at 18-24% to fill the void.<\/p>\n<p>The TReDS volume has increased from \u20b940,000 crore to \u20b93.47 lakh crore in 3 years, representing an 8.7-fold rise, which is an indicator of how MSMEs have been financing the sale of invoices on an expensive mode \u2013 TReDS invoice discounting \u2014 instead of getting timely payment. The average MSME in India is getting paid 73 days after invoice, which is 28 days after the legal maximum of 45 days as per the existing MSMED Act, according to <a href=\"https:\/\/www.livemint.com\/money\/personal-finance\/msme-working-capital-2026\/\">Livemint analysis of MSME working capital trends<\/a>.<\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Explore_proven_business_ideas_with_high_success_potential\"><\/span><a href=\"https:\/\/www.niir.org\/startup-selector\">Explore proven business ideas with high success potential<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The amendment now makes the procurement of MSMEs by CPSEs subject to <a href=\"https:\/\/www.rbi.org.in\/scripts\/BS_ViewMasDirections.aspx?id=10488\">TReDS<\/a>, introduces hard timelines of 90+90 days (90 days for mediation and 90 days for arbitration) and provides for recovery of the awards as land revenue (the fastest process in the Indian legal system).<\/p>\n<table>\n<tbody>\n<tr>\n<td>State<\/td>\n<td>Key MSME Cluster<\/td>\n<td>Top Delayed Payment Sectors<\/td>\n<td>Old MSEFC Status<\/td>\n<\/tr>\n<tr>\n<td>Maharashtra<\/td>\n<td>Pune, Mumbai, Nashik, Kolhapur<\/td>\n<td>Auto components, chemicals, engineering<\/td>\n<td>1 MSEFC; severe backlog<\/td>\n<\/tr>\n<tr>\n<td>Tamil Nadu<\/td>\n<td>Coimbatore, Chennai, Tirupur<\/td>\n<td>Textiles, auto parts, pharma<\/td>\n<td>1 MSEFC; multi-year queues<\/td>\n<\/tr>\n<tr>\n<td>Gujarat<\/td>\n<td>Surat, Ahmedabad, Rajkot, Vadodara<\/td>\n<td>Textiles, chemicals, plastics<\/td>\n<td>1 MSEFC; court overlap<\/td>\n<\/tr>\n<tr>\n<td>Rajasthan<\/td>\n<td>Jaipur, Jodhpur, Bhilwara<\/td>\n<td>Textiles, handicrafts, marble<\/td>\n<td>1 MSEFC; limited capacity<\/td>\n<\/tr>\n<tr>\n<td>Uttar Pradesh<\/td>\n<td>Agra, Kanpur, Noida, Varanasi<\/td>\n<td>Leather, textiles, IT hardware<\/td>\n<td>1 MSEFC; severe delays<\/td>\n<\/tr>\n<tr>\n<td>West Bengal<\/td>\n<td>Kolkata, Howrah, Durgapur<\/td>\n<td>Engineering, steel, jute<\/td>\n<td>1 MSEFC<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Five_Changes_That_Directly_Affect_Your_Business\"><\/span><strong>Five Changes That Directly Affect Your Business<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>These provisions address individual failure modes in the existing system.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Change_1_Mandatory_CPSE_Payments_Through_TReDS\"><\/span><strong>Change 1: Mandatory CPSE Payments Through TReDS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>All Central PSEs have to now settle their invoices for MSME procurement through TReDS. For suppliers supplying to BHEL, ONGC or SAIL, this means they receive payment within 3\u20135 days after the buyer accepts the invoice, compared with the earlier 60\u201390 day period. No negotiation required. It is required by law.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Change_2_%E2%80%94_Hard_Dispute_Resolution_Timeline\"><\/span><strong>Change 2 \u2014 Hard Dispute Resolution Timeline<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Mediation was completed in 90 days from the first appearance. Within 30 days of unsuccessful mediation, referral to arbitration. An arbitral award made within 90 days of the pleadings. Total max: Around 8 months as compared to 18\u201336 months earlier. With a disputed receivable of \u20b925 lakh, 8 months is the difference between surviving and closure for an MSME.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Change_3_%E2%80%94_District_Collector_Recovery\"><\/span><strong>Change 3 \u2014 District Collector Recovery<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The District Collector can now recover any mediated settlement or arbitral award as \u2018arrear of land revenue\u2019, providing the most effective enforcement avenue outside of criminal law. Those who were okay with not worrying about MSEFC awards have now got a real reason to worry about asset attachment.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Change_4_%E2%80%94_Multiple_MSEFCs_Per_State\"><\/span><strong>Change 4 \u2014 Multiple MSEFCs Per State<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>States no longer have limits on the number of MSEFCs that they can establish. The States with the highest number of cases will experience significantly shorter per-case resolutions in Maharashtra, Gujarat and Tamil Nadu, with each having one case per state.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Change_5_%E2%80%94_Decriminalised_Non-Compliance\"><\/span><strong>Change 5 \u2014 Decriminalised Non-Compliance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Non-filing of Udyam registration now carries graded civil penalties rather than criminal prosecution. First offence: warning. Second: civil penalty. Third: escalated penalty. This removes the chilling effect that kept sub-contractors outside the formal system.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_You_Must_Do_Right_Now_%E2%80%94_Practical_Steps\"><\/span><strong>What You Must Do Right Now \u2014 Practical Steps<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>For New Entrepreneurs: <\/strong>Register on <a href=\"https:\/\/udyamregistration.gov.in\">Udyam<\/a>. Connect to TReDS platform (M1xchange, RXIL or A.). TREDS). Ensure all supply contracts have clear 45-day payment terms and reference to MSMED Act Section 15. Generate e-invoices for filing tax bills. If any buyer is already delayed, register on <a href=\"https:\/\/msmesamadhaan.in\">MSME Samadhaan<\/a>.<\/p>\n<p><strong>For Existing MSMEs:<\/strong> Re-classification under the new investment\/turnover criteria for MSMEs. Make sure that all buyer contracts include reference to Section 15. Force CPSE buyers to onboard and accept TReDS \u2014 it has now become a legal obligation. Expand your TReDS eligible supplier base by using provisions for decriminalisation to incorporate sub-contractors.<\/p>\n<figure id=\"attachment_36009\" aria-describedby=\"caption-attachment-36009\" style=\"width: 848px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-36009\" src=\"https:\/\/niir.org\/blog\/wp-content\/uploads\/2026\/08\/MSMED-Amendment-2026-Passed1.webp\" alt=\"MSMED Amendment Bill 2026 new MSME payment rules and TReDS\" width=\"848\" height=\"1264\" srcset=\"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/MSMED-Amendment-2026-Passed1.webp 848w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/MSMED-Amendment-2026-Passed1-201x300.webp 201w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/MSMED-Amendment-2026-Passed1-687x1024.webp 687w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/MSMED-Amendment-2026-Passed1-768x1145.webp 768w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/MSMED-Amendment-2026-Passed1-512x763.webp 512w\" sizes=\"(max-width: 848px) 100vw, 848px\" \/><figcaption id=\"caption-attachment-36009\" class=\"wp-caption-text\">MSMED Amendment Bill 2026 introduces important changes to MSME payments, TReDS and delayed payment recovery.<\/figcaption><\/figure>\n<table>\n<tbody>\n<tr>\n<td>Compliance Upgrade Item<\/td>\n<td>Estimated Cost (INR)<\/td>\n<\/tr>\n<tr>\n<td>Udyam Registration<\/td>\n<td>Free<\/td>\n<\/tr>\n<tr>\n<td>TReDS Platform Onboarding<\/td>\n<td>\u20b90\u20135,000<\/td>\n<\/tr>\n<tr>\n<td>Legal Review of Existing Buyer Contracts<\/td>\n<td>\u20b915,000\u201340,000<\/td>\n<\/tr>\n<tr>\n<td>MSME Samadhaan Filing (if delayed payment)<\/td>\n<td>Free<\/td>\n<\/tr>\n<tr>\n<td>CA for Reclassification Assessment<\/td>\n<td>\u20b95,000\u201315,000<\/td>\n<\/tr>\n<tr>\n<td>ISO 9001 Certification (recommended for CPSE supply)<\/td>\n<td>\u20b91,50,000\u20133,00,000<\/td>\n<\/tr>\n<tr>\n<td>E-Invoicing System Setup<\/td>\n<td>\u20b910,000\u201330,000<\/td>\n<\/tr>\n<tr>\n<td><strong>Total Compliance Upgrade Cost<\/strong><\/td>\n<td><strong>\u20b91,80,000\u20133,90,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"The_Hard_Numbers_What_the_Amendment_Saves_You\"><\/span><strong>The Hard Numbers: What the Amendment Saves You<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If the CPSE receivables for an MSME are \u20b960 lakh and the average delay in getting these paid is 75 days:<\/p>\n<p>The annual saving on \u20b960 lakh CPSE receivables comes to \u20b986,000 and the margin improvement for CPSE supply of \u20b91 crore would be directly to the net profit of \u20b91.5\u20132%.<\/p>\n<p>For a manufacturer, settling these \u20b925 lakh disputes in 8 months instead of 30 months frees up capital 22 months earlier and can save \u20b93.5\u20134 lakh in interest at a 16% cost of funds.<\/p>\n<table>\n<tbody>\n<tr>\n<td>Scheme<\/td>\n<td>Ministry<\/td>\n<td>Eligibility<\/td>\n<td>Max Benefit<\/td>\n<td>Apply At<\/td>\n<\/tr>\n<tr>\n<td>TReDS Invoice Discounting<\/td>\n<td>RBI \/ Finance Ministry<\/td>\n<td>Udyam-registered MSMEs<\/td>\n<td>Based on invoice value<\/td>\n<td>M1xchange, RXIL, A.TREDS<\/td>\n<\/tr>\n<tr>\n<td>CGTMSE<\/td>\n<td>MoMSME \/ SIDBI<\/td>\n<td>MSME loans up to \u20b95 crore<\/td>\n<td>75\u201385% credit guarantee<\/td>\n<td>cgtmse.in<\/td>\n<\/tr>\n<tr>\n<td>PMEGP<\/td>\n<td>MoMSME \/ KVIC<\/td>\n<td>New manufacturing MSME<\/td>\n<td>\u20b925 lakh + 25\u201335% subsidy<\/td>\n<td>pmegp.kvic.org.in<\/td>\n<\/tr>\n<tr>\n<td>ZED Certification<\/td>\n<td>MoMSME<\/td>\n<td>Manufacturing MSMEs<\/td>\n<td>Up to \u20b95 lakh subsidy<\/td>\n<td>zed.msme.gov.in<\/td>\n<\/tr>\n<tr>\n<td>MUDRA Yojana<\/td>\n<td>Finance Ministry<\/td>\n<td>Existing micro-enterprises<\/td>\n<td>\u20b950,000\u2013\u20b910 lakh<\/td>\n<td>mudra.org.in<\/td>\n<\/tr>\n<tr>\n<td>Stand-Up India<\/td>\n<td>DPIIT<\/td>\n<td>SC\/ST, women entrepreneurs<\/td>\n<td>\u20b910 lakh\u2013\u20b91 crore greenfield<\/td>\n<td>standupmitra.in<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Mahesh Gupta, Kanpur, Uttar Pradesh, is an entrepreneur of a leather goods shop with 35 workers, who has been supplying leather goods to government organisations and CPSEs for 15 years. The greatest difficulty in his operations was payment delay, never demand. At one time, I had \u20b928 lakh with government as a receivable and had borrowed it at 18% to pay my labourers. By joining TReDS, the time to payment was reduced from 83 days to 6 days. The annual interest savings is nearly \u20b93.2 lakh. This will benefit thousands of CPSE suppliers who were unable to force onboarding by their buyers previously, with the mandatory CPSE-TReDS requirement under the MSMED Amendment. <a href=\"https:\/\/www.sidbi.in\/en\/msme-pulse\">Source: SIDBI MSME Pulse Report<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Manufacturing_Businesses_That_Benefit_Most_From_This_Law\"><\/span><strong>5 Manufacturing Businesses That Benefit Most From This Law<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Auto_Component_Manufacturing_for_CPSE_and_Defence_OEMs_%E2%82%B930%E2%80%9360_Lakh\"><\/span><strong>Auto Component Manufacturing for CPSE and Defence OEMs (\u20b930\u201360 Lakh)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Auto component manufacturers<\/strong> supplying BHEL, BEML, HAL, and defence OEMs are among the biggest beneficiaries of the MSMED Amendment&#8217;s TReDS mandate. With mandatory TReDS, working capital cycles compress from 90+ days to under 10 days \u2014 directly improving effective return on capital from 14\u201318% to 22\u201328% for well-run units. Investment: \u20b930\u201360 lakh. Net margin at full capacity: 16\u201322%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Institutional_Garment_Supply_to_Government_Bodies_%E2%82%B925%E2%80%9345_Lakh\"><\/span><strong>Institutional Garment Supply to Government Bodies (\u20b925\u201345 Lakh)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Police uniforms, school uniforms, hospital linen, defence apparel \u2014 the government is one of India&#8217;s largest textile buyers. MSME garment units supplying government tenders have historically suffered 90\u2013120-day payment delays. The mandatory TReDS routing for all CPSE procurement brings this category directly into the liquidity network. <strong>First delivery to TReDS discounting: as fast as 7 days.<\/strong> A 30\u201350 machine RMG unit targeting government institutional buyers can be set up for \u20b925\u201345 lakh.<\/p>\n<h3 class=\"PDq2pG_selectionAnchorContainer\" style=\"text-align: center;\" data-start=\"46\" data-end=\"78\"><span class=\"ez-toc-section\" id=\"View_Full_Project_Details_Textile_Garment_Industry_Handbook\"><\/span><strong data-start=\"49\" data-end=\"78\">View Full Project Details: <\/strong><a href=\"https:\/\/www.niir.org\/profile-projects-reports\/profiles\/textile-apparel-clothing-denim-wear-innerwear-lingerie-hosiery-denim-jeans-readymade-garments-under-garments-industry\/z,,1b,0,a\/index.html\">Textile &amp; Garment Industry Handbook<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Packaging_Materials_for_CPSE_Supply_Chains_%E2%82%B918%E2%80%9330_Lakh\"><\/span><strong>Packaging Materials for CPSE Supply Chains (\u20b918\u201330 Lakh)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A <strong>corrugated box or flexible packaging unit<\/strong> with \u20b918\u201330 lakh in investment can build a reliable CPSE supply relationship at 14\u201320% net margin. The MSMED Amendment makes payment collection more predictable, enabling better procurement planning and bulk raw material buying \u2014 itself cutting costs by 5\u20138%.<\/p>\n<h3 class=\"wp-block-heading has-text-align-center\" style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Related_Article_Biodegradable_Packaging_Manufacturing_Business_in_India_Cost_Profit_Project_Report\"><\/span>Related Article: <a href=\"https:\/\/niir.org\/blog\/biodegradable-packaging-business\/\">Biodegradable Packaging Manufacturing Business in India: Cost, Profit &amp; Project Report<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Food_Processing_for_Government_Canteens_and_Mid-Day_Meal_Programmes_%E2%82%B98%E2%80%9325_Lakh\"><\/span><strong>Food Processing for Government Canteens and Mid-Day Meal Programmes (\u20b98\u201325 Lakh)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>CPSE canteens, school mid-day meal programmes, and defence mess facilities collectively consume vast quantities of <a href=\"https:\/\/niir.org\/blog\/profitable-food-manufacturing\/\">food products<\/a>. An FSSAI-licensed food processing unit supplying government canteens via <a href=\"https:\/\/gem.gov.in\">GeM (Government e-Marketplace)<\/a> benefits from GeM + TReDS integration \u2014 among the fastest B2G payment cycles available. Investment: \u20b98\u201325 lakh. Net margin: 12\u201320%.<\/p>\n<h3 class=\"PDq2pG_selectionAnchorContainer\" style=\"text-align: center;\" data-start=\"138\" data-end=\"181\"><span class=\"ez-toc-section\" id=\"Get_Detailed_Insights_from_This_Book_Handbook_on_Fruits_Vegetables_Food_Processing_with_Canning_Preservation\"><\/span><strong data-start=\"141\" data-end=\"181\">Get Detailed Insights from This Book: <\/strong><a href=\"https:\/\/www.niir.org\/books\/book\/handbook-on-fruits-vegetables-food-processing-with-canning-preservation-3rd-edition\/isbn-9788178330839\/zb,,13,a,0,0,a\/index.html\">Handbook on Fruits, Vegetables &amp; Food Processing with Canning &amp; Preservation<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Industrial_Safety_Equipment_Assembly_for_CPSEs_Under_%E2%82%B910_Lakh\"><\/span><strong>Industrial Safety Equipment Assembly for CPSEs (Under \u20b910 Lakh)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>CPSEs consume enormous quantities of <strong>BIS-certified safety equipment<\/strong> \u2014 helmets, safety shoes, gloves, goggles, harnesses. A safety equipment assembly unit using BIS-certified components, assembled and branded locally, can enter this market for \u20b97\u201310 lakh. List on GeM and bid on CPO tenders. The MSMED Amendment makes collecting CPSE receivables faster and more certain than at any previous point.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"NPCS_Structure_Your_MSME_for_the_New_Legal_Environment\"><\/span><strong>NPCS: Structure Your MSME for the New Legal Environment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The MSMED Amendment changes the financial environment for MSME manufacturing. But a sound business model and credible project plan remain the foundation. <a href=\"https:\/\/niir.org\">Niir Project Consultancy Services (NPCS)<\/a> helps entrepreneurs structure projects that qualify for MSME financing, government tenders, GeM listing, and bank term loans. Their detailed project reports and feasibility studies are available through <a href=\"https:\/\/niir.org\">niir.org<\/a> and <a href=\"https:\/\/entrepreneurindia.co\">entrepreneurindia.co<\/a> \u2014 formatted for DIC submissions, PMEGP applications, and bank presentations.<\/p>\n<p><iframe  id=\"_ytid_16656\"  width=\"750\" height=\"421\"  data-origwidth=\"750\" data-origheight=\"421\" src=\"https:\/\/www.youtube.com\/embed\/to-bF9N9FxU?enablejsapi=1&#038;autoplay=0&#038;cc_load_policy=0&#038;cc_lang_pref=&#038;iv_load_policy=1&#038;loop=0&#038;rel=1&#038;fs=1&#038;playsinline=0&#038;autohide=2&#038;theme=dark&#038;color=red&#038;controls=1&#038;disablekb=0&#038;\" class=\"__youtube_prefs__  epyt-is-override  no-lazyload\" title=\"YouTube player\"  allow=\"fullscreen; accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen data-no-lazy=\"1\" data-skipgform_ajax_framebjll=\"\"><\/iframe><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Register_Today_%E2%80%94_The_Law_Now_Works_in_Your_Favour\"><\/span><strong>Register Today \u2014 The Law Now Works in Your Favour<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The MSMED Amendment is the most significant legislative upgrade for Indian small manufacturers in 20 years. It helps only those who are registered, formal, and correctly structured. The entrepreneur who formalises today \u2014 on Udyam, on TReDS, on GeM \u2014 operates in a world where buyers face real consequences for late payment. Registration takes 10 minutes at <a href=\"https:\/\/udyamregistration.gov.in\">udyamregistration.gov.in<\/a>. There is no reason to wait.<\/p>\n","protected":false},"excerpt":{"rendered":"Parliament passed the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, on August 7. Twenty years after&hellip;","protected":false},"author":25,"featured_media":36008,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":21,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","footnotes":""},"categories":[20749,17376,17377],"tags":[21189,21185,21187,21188,21184,21186],"industry":[],"class_list":["post-36006","post","type-post","status-publish","format-standard","has-post-thumbnail","category-industry-news-business-opportunities","category-msme-small-scale-industries","category-government-schemes-policies","tag-msme-act-2026","tag-msme-delayed-payment","tag-msme-delayed-payment-recovery","tag-msme-samadhaan","tag-msmed-amendment-bill-2026","tag-treds-for-msmes","cs-entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>MSMED Amendment Bill 2026: 45-Day Payment, TReDS &amp; MSME<\/title>\n<meta name=\"description\" content=\"MSMED Amendment Bill 2026: Know the new MSME payment rules, TReDS, delayed payment recovery, MSEFC and Udyam updates.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MSMED Amendment Bill 2026: 45-Day Payment, TReDS &amp; MSME\" \/>\n<meta property=\"og:description\" content=\"MSMED Amendment Bill 2026: Know the new MSME payment rules, TReDS, delayed payment recovery, MSEFC and Udyam updates.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/\" \/>\n<meta property=\"og:site_name\" content=\"Niir Project Consultancy Services\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-17T12:47:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-09-03T07:28:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/MSMED-Amendment-2026-Passed.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1672\" \/>\n\t<meta property=\"og:image:height\" content=\"941\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Sai Teja\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sai Teja\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"MSMED Amendment Bill 2026: 45-Day Payment, TReDS & MSME","description":"MSMED Amendment Bill 2026: Know the new MSME payment rules, TReDS, delayed payment recovery, MSEFC and Udyam updates.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/","og_locale":"en_US","og_type":"article","og_title":"MSMED Amendment Bill 2026: 45-Day Payment, TReDS & MSME","og_description":"MSMED Amendment Bill 2026: Know the new MSME payment rules, TReDS, delayed payment recovery, MSEFC and Udyam updates.","og_url":"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/","og_site_name":"Niir Project Consultancy Services","article_published_time":"2026-08-17T12:47:42+00:00","article_modified_time":"2026-09-03T07:28:32+00:00","og_image":[{"width":1672,"height":941,"url":"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/MSMED-Amendment-2026-Passed.webp","type":"image\/webp"}],"author":"Sai Teja","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Sai Teja","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#article","isPartOf":{"@id":"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/"},"author":{"name":"Sai Teja","@id":"\/#\/schema\/person\/53745d669c82b549c320bcf91c5dd1ac"},"headline":"MSMED Amendment 2026 Passed: Your Buyer Has 45 Days to Pay \u2014 Or You Can Sue in 8 Months","datePublished":"2026-08-17T12:47:42+00:00","dateModified":"2026-09-03T07:28:32+00:00","mainEntityOfPage":{"@id":"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/"},"wordCount":1666,"image":{"@id":"https:\/\/www.niir.org\/blog\/msmed-amendment-bill-2026\/#primaryimage"},"thumbnailUrl":"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/MSMED-Amendment-2026-Passed.webp","keywords":["MSME Act 2026","MSME delayed payment","MSME delayed payment recovery","MSME Samadhaan","MSMED Amendment Bill 2026","TReDS for MSMEs"],"articleSection":["Industry News &amp; 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