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FISME to collate feedback for MSME Public Procurement Policy

Updated: Feb 21, 2017 11:43:54am

FISME to collate feedback for MSME Public Procurement Policy

New Delhi, Feb 21 (KNN) The Ministry of Micro, Small and Medium Enterprises (MoMSME) is planning to review the Public Procurement Policy. For this, the Ministry has roped in Federation of Indian Micro and Small & Medium Enterprises (FISME), an apex body for MSME associations in the country, to prepare a draft Public Procurement Policy.

MoMSME has asked FISME to seek feedback from stakeholders and associations and incorporate them in the draft policy.

According to the Public Procurement Policy all central government agencies have to ensure that at least 20% of their procurement is from the Micro and Small sector (excluding Medium enterprises). Further, 4% of total procurement (20% of the total MSE share) has to be from SC/ST entrepreneurs. It has been operationalized through Government order duly approved by the Cabinet.

While the policy was introduced in 2012, it has become mandatory from 1st April 2015. But only 61 PSUs have achieved the target of 20% procurement. From time to time, the MSE suppliers and associations have been raising serious concerns about various anti-competitive practices adopted by buying agencies to crowd out MSEs from procurement.

To review the progress of the Policy, the Department Related Parliamentary Standing Committee on Industry met on 27th January 2017 under Chairmanship of Member of Parliament Sharad Yadav and asked Government to address woes of MSEs.

Following it, KK Jalan, Secretary, Ministry of MSME convened a meeting of selected associations to identify constraints faced by MSMEs in supplying to the central agencies.

“A number of issues were raised by associations including problems like discretionary pre-qualification criteria, onerous commercial terms of supply, delay in payments and non-compliance of provisions of the Policy in letter and spirit by Central agencies/ PSUs,” FISME President Dr Sangam Kurade said.

The Secretary MSME expressed willingness of the Ministry to suitably amend the Order plugging certain loopholes which are exploited by buying agencies to exclude MSE suppliers from public procurement, Dr Kurade added. 

In this context, FISME has sought inputs from MSME associations and other stakeholders about the PPP for MSEs and suggestions to strengthen the policy.

The feedback can be sent  via email by  28th February 2017 to debashis@fisme.org.in


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