Parliament Passes Key Bill to Support MSMEs Amid Opposition Protests

Significant Legislative Move for MSMEs

New Delhi: The Micro, Small and Medium Enterprises Development (Amendment) Bill 2026 has received parliamentary approval, targeting the issue of payment delays that MSMEs frequently encounter while also streamlining dispute resolution processes. The Lok Sabha passed the Bill on Friday following its clearance by the Rajya Sabha earlier in the week.

Presented by MSME Minister Jitan Ram Manjhi, this new legislation mandates that all procurement invoices from Central Public Sector Enterprises be settled through the Trade Receivables Discounting System, which is expected to enhance cash flow for MSMEs.

In addition, the Bill stipulates that mediation for disputes must be finalized within a 90-day timeframe. It also requires courts to disburse at least 50% of the disputed amounts to MSMEs if an appeal remains unresolved for over six months.

Furthermore, it reclassifies minor registration or reporting infractions from criminal offenses to graded administrative penalties, with fines ranging from Rs 1,000 to Rs 1,00,000.

Despite the uproar from the Opposition during the Bill's passage, Presiding Officer Dilip Saikia attempted to maintain order in the House, urging protesting members to allow proceedings to continue.

Saikia expressed dissatisfaction with the disruptions, emphasizing that such protests undermine the democratic process. He encouraged members to return to their seats for constructive discussions, assuring them they would have ample opportunity to voice their concerns.

Parliamentary Affairs Minister Kiren Rijiju voiced his worries regarding the Opposition's behavior, highlighting that Home Minister Amit Shah consistently attends Parliament sessions, often late into the night.

As the commotion persisted, the Presiding Officer adjourned the House for the day, scheduling a reconvening at 11:00 AM on Monday.

Earlier that day, Lok Sabha Speaker Om Birla honored the freedom fighters and martyrs of the Quit India Movement, commemorating the 84th anniversary of this pivotal event.