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16/10/2017 01:57pm

Govt. might bring in exceptions to the 30 per cent procurement rule to MNCs, MSMEs say detrimental

image Govt. might bring in exceptions to the 30 per cent procurement rule to MNCs, MSMEs say detrimental

New Delhi, Oct 16 (KNN) With the different Multi-National Companies (MNC’s) demanding relaxation on the 30 per cent procurement norm from the Micro, Small and Medium Enterprises (MSMEs) and news reports surfacing that the proposal is under the consideration of the government, the MSMEs say that the move if done, would be detrimental for the sector.

Talking to KNN, Pankaj Bansal, Director of TMA International explained the situation.

Bansal said that the government’s policy of mandating the firms to source at least 30 per cent was a great step towards for the MSMEs, however with the news reports of the government consideration relaxation to the MNC’s is a cause of anxiety in the sector.

Explaining further, Bansal said that the reason MNC’s often cite while making such demands is that the local MSMEs aren’t capable of providing to the needs of the firms.

If that is the case, there should be a two-step approach to the issue. Firstly the government must inspect whether or not the claims made by the MNC’s bear truth.

“This preposition could simply be an excuse by the big firms to avoid the local sourcing’ said Bansal.

The second step, in case it is found that the MSMEs lack capacity, the MNC’s must facilitate vendor development as well as certification programs in order to make the MSMEs productive along the needs of the product.

Bansal made these remarks responding to the news reports surfacing that the government is considering the proposal made by Apple that demanded certain exemptions for setting up their unit in the country. (KNN/DA)

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