MSME Ministry approves scheme for setting up National SC/ ST Hub to boost procurement
New Delhi, Aug 30 (KNN) The Ministry of MSME has approved the scheme for setting up of National Schedule Caste and Schedule Tribe Hub to provide professional support to SC & ST entrepreneurs to fulfil the obligation under the Central Government/ procurement policy for micro and small entrepreneurs order 2012 adopt and applicable business practice and leverage to stand up India initiative.
However, the Ministry said this issue with the approval of Hon'ble Minister (MSME).
The National SC/ST Hub is set up to provide professional support to SC/ ST entrepreneurs to fulfil the obligations under the Central Government Public Procurement Policy for Micro and Small Enterprises Order 2012, adopt applicable business practices and leverage the Stand Up India initiatives.
According to the Public Procurement Policy, 20% of total procurement of goods and services by Central Ministries and CPSEs shall be made from the MSEs.
20% of such procurement from MSEs, i.e 4% of total procurement of goods and services shall be made from MSEs owned by SC & ST entrepreneurs.
Presently, less than 0.5% of total procurement of goods and services of CPSEs is made from enterprises owned by SC/ST.
The Ministry of MSME, in a memorandum, said, “The objective of the announcement clearly is to promote "enterprise culture" amongst the SC / ST population. This would also enable Central Public Sector Enterprises (CPSEs) us to fulfil the target, which the Government has kept for procurement by them. It has been laid down in the Public Procurement Policy 2012 that 20% of 20% i.e. 4% of procurement shall be done by Ministries, Departments and CPSEs from the enterprises owned by SC / ST.
In addition, the Hub would also enable the Government to develop entrepreneurship among SC/ST population, which at present, is at very low level,” it added.
This scheme would be implemented by the Ministry of MSME through National Small Industries Corporation (NSIC), a public sector undertaking under the administrative control of this Ministry.
The scheme is proposed to be applicable from the date of sanction till March 31, 2020 and the total project cost is proposed to be is Rs. 490 crore for the period from 2016-17 to 2019-20.
The first task of the hub would be to gather data about SC/ST Enterprises. The SC/ST Hub would work with the CPSEs, industry associations and SC/ST Enterprises to effectively participate in public procurement.
The functions of the hub would be Collection, Collation and Dissemination of information regarding SC/ ST enterprises and entrepreneurs.
Apart from this, the hub would focus on capacity building, vendor development programmes, promotion of exhibitions, mentoring, hand-holding etc.
The National SC/ST Hub would begin operations as a Special Cell in NSIC. The specific schemes/tasks would be undertaken by SC/ST Hub would include – a Special Credit Linked Capital Subsidy Scheme (CLCSS) with 25% capital subsidy and overall investment ceiling of Rs.1 crore; Marketing Assistance Scheme for SC/ST enterprises; National Manufacturing Competitiveness Programme would have special focus on SC/ST enterprises; special drive would be launched with industry associations, NSIC, MSME-Dls and States for registration of SC/ST enterprises with MSME Data Bank; and more.
Further, a High Powered Monitoring Committee would be formed with Minister for MSME as Chair. This Committee would provide guidance, review and monitor the work being done by the SC/ST Hub and various Ministries and organizations in the Government for SC/ST entrepreneurship development.
An Advisory Committee would also be set up to work under the Monitoring Committee. It will be constituted by the Chairman of the High Powered Monitoring Committee with an experienced industry representative as chairperson. (KNN Bureau)
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