Pune: Small Businesses In PCMC Troubled As MNCs Fail To Make Payments On Time

Pune, 23rd June 2021: Pimpri-Chinchwad area is a hub of many small companies and big Multinational Corporations (MNCs) as well. Majorly, MNCs order products, services from these small companies as is easier and cheaper. However, it has come to notice that many times the MNCs delay or cut the payments citing various reasons. Thus, the smaller businesses are facing a tough cash crunch to pay their workers and other bills.

Most of these MNCs have their main offices out of India. As a result, small business owners find it difficult to have a single contact point. They are also unable to follow up with foreign offices of these MNCs.

Sometimes MNCs delay payments on purpose and they also inspect material provided now and then to find faults in it. Then, the payments are cut according to the inspection. Sometimes, it also takes up to two years to receive the payment.

Due to all these troubles, small businesses face troubles in paying bank loans and salaries of their workers. Also, to find a solution the government had set up a committee. The small business units had the option to complain online and then both parties would be called in front of the committee.

However, in the last 10 years, few complaints have been solved by this committee and small businesses demand that there should be a binding law for these MNCs under the ‘Magnetic Maharashtra’ initiative. They also say that the payment shall be made within 45 days of receiving the orders.