Home » SSI Corner » SSI Regulations » Delayed Payments Act, 1993

In line with the long standing demand of small scale sector to alleviate the problem of Delayed Payments, an Act was promulgated on 2nd April 1993. It makes a provision for small scale industries to charge penal rate of interest on outstanding payments if the same are delayed beyond the agreed or stipulated period of time. It is expected to relieve the Small Scale industries from shortage of working capital arising due to delayed payment against supplies made by them and will go a long way in alleviating the cash flow problems and provide a bulwark against bullying tactics of the big industry