Penal interest on ministries for payment delay

New Delhi: A functionality enabling public procurement portal GeM to impose penal interest for making delayed payments to vendors by government ministries and departments will be operational in July, a senior official said on Tuesday. In 2020, the government decided to levy a 1 per cent penalty on government departments and agencies for delayed payments to vendors selling goods on the GeM platform. The provision would be effective from July, a senior official said on Tuesday. Government e-Market (GeM) CEO PK Singh said that “there are issues pertaining to getting timely payments from buyers, particularly state governments.