Mumbai, Jan 27: In a major step aimed at improving transparency and easing financial stress on contractors, the Maharashtra state cabinet, led by Chief Minister Devendra Fadnavis, on Tuesday approved the adoption of the Trade Receivables Discounting System (TReDS) platform for clearing pending payments of micro, small and medium enterprise (MSME) contractors associated with the Public Works Department (PWD).
Boost to transparency and faster payments
Officials said the move would bring greater efficiency, transparency and speed to the payment process while providing much-needed working capital support to small contractors.
According to the government, the TReDS platform will streamline the payment mechanism in the Public Works Department and ensure timely settlement of dues for MSME contractors registered with the department.
By enabling faster access to working capital, the system is expected to help contractors expand operations, upgrade technology and enhance their competitiveness.
Relief for MSME contractors
Officials pointed out that MSME contractors often face liquidity constraints, which impact the timely completion of government projects. The new system will help them overcome working capital challenges and ensure smoother execution of contracts.
TReDS adoption across departments
Chief Minister Fadnavis also directed that all state government departments should gradually adopt the TReDS platform. He instructed each department to prepare a Standard Operating Procedure (SOP) aligned with its functional requirements and working processes. To oversee this transition, the Chief Minister ordered the formation of a committee under the chairmanship of the Chief Secretary.
About the TReDS platform
The Trade Receivables Discounting System is a joint initiative of the Government of India and the Reserve Bank of India. The platform aims to promote financial inclusion and support flagship programmes such as ‘Make in India’ and ‘Skill India’ by providing affordable and timely financing to micro, small and medium enterprises.
Integration with e-procurement next
The state government further stated that after the successful implementation of the system, the next phase would involve integrating the TReDS platform with e-tendering and e-procurement portals.
This integration will allow invoice submission, verification and discounting through a single unified platform, further simplifying processes for contractors and government departments alike.
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The move is expected to significantly improve the ease of doing business for MSMEs engaged in public infrastructure projects across Maharashtra.
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