Maharashtra Cabinet Greenlights TReDS Platform to Boost MSME Payments in Public Works Department
In a significant move aimed at bolstering financial support for micro, small, and medium enterprises (MSMEs), the Maharashtra state cabinet, meeting in Mumbai on Tuesday, has given its approval for the adoption of the Trade Receivable Electronic Discounting System (TReDS) platform. This initiative is specifically targeted at addressing the issue of pending payments for MSME entrepreneurs and contractors associated with the Public Works Department (PWD).
Cabinet Directive for State-Wide Implementation
The cabinet has issued a directive mandating that all departments across the state should adopt the TReDS platform. To ensure a smooth and effective rollout, each department has been instructed to develop its own Standard Operating Procedure (SOP) tailored to its unique working methods and requirements. A committee will be formed under the chairmanship of the Chief Secretary, as directed by Chief Minister Devendra Fadnavis, to oversee this process and facilitate coordination.
Enhancing Financial Inclusion and Transparency
Officials highlighted that the TReDS platform is a joint initiative of the central government and the Reserve Bank of India, designed to promote key national programmes such as financial inclusion, Make in India, and Skill India. The primary objective of this system is to provide affordable and timely finance to MSMEs, thereby streamlining and making the payment process within the PWD more transparent.
By implementing TReDS, MSME contractors registered with the department will gain improved access to the necessary working capital. This financial boost is expected to empower them to expand their operations, upgrade their technology, and enhance their overall competitiveness in the market. Moreover, it will help these contractors overcome common working capital challenges, enabling them to complete their contracts on schedule without financial bottlenecks.
Future Integration Plans
Looking ahead, officials revealed that following the successful implementation of the TReDS platform, the next phase will involve integrating it with the e-tendering and e-procurement portals. This integration aims to create a unified system where invoice submission, verification, and discounting can all be managed in one centralized location, further simplifying administrative processes and reducing delays.
This strategic adoption of TReDS underscores the state government's commitment to supporting MSMEs, which are vital to the economic growth and development of Maharashtra. By leveraging digital platforms, the initiative seeks to foster a more efficient, transparent, and supportive environment for small businesses and contractors across the region.
