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How the MSME ODR portal is helping small businesses recover delayed payments

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How the MSME ODR portal is helping small businesses recover delayed payments

For India's micro and small enterprises (MSEs), getting paid on time is often harder than winning the order. The MSME ODR portal, run by the Ministry of Micro, Small and Medium Enterprises, is changing how these businesses chase unpaid dues. It lets a small supplier file a claim against a defaulting buyer online, attend conciliation meetings virtually and settle without a lawyer. Accounts from enterprises in Telangana suggest the shift is cutting both the time and the cost of recovery.

A delayed payment can hold up salaries, raw material purchases and loan repayments. The MSMED Act, 2006 requires buyers to pay MSE suppliers within 45 days and levies compound interest on defaults. It also lets suppliers refer disputes to a Micro and Small Enterprises Facilitation Council (MSEFC), of which there are 161 across states and Union Territories, according to the Ministry.

In practice, pursuing a claim meant paperwork, trips to the district headquarters and repeated hearings. The Samadhaan portal, launched in 2017, brought filing online but largely worked as a tracking system. For many small suppliers, the effort of recovery outweighed the amount at stake.

The Ministry of MSME is the nodal body behind the platform. The Online Dispute Resolution scheme for delayed payments was launched in December 2023 under RAMP (Raising and Accelerating MSME Performance), a World Bank-supported programme. The portal went live on 27 June 2025, and since 15 October 2025, all new delayed-payment cases must be filed on it.

The portal carries a case from filing to settlement online, covering notices, conciliation meetings and hearings.


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