New Delhi, Apr 28 (KNN) The Indian Industries Association (IIA) has urged the Ministry of MSMEs to include items like Welding Electrodes and Wires, Ayurvedic & Unani Medicines and more in the list of items reserved for exclusive purchase by Government departments and undertakings from Micro & Small Enterprises (MSEs).

Government of India had reserved 358 item for exclusive purchase by Government departments and undertakings from Micro & Small Enterprises long back.

This list is now being modified by the Ministry of MSME for which suggestions of all the stakeholder are invited.

In its representation, Indian Industries Association (IIA) has urged the Ministry to include the following items:

1.    “Welding Electrodes and Wires” should be included in the list as large number of MSE’s are engaged in manufacturing these items as per BIS Standards in India. At present the Government Departments do not prefer to buy these items from MSE’s and go for purchase from Multinational companies like ESAB and Lincoin Electric etc.

2.    “LED Street Light Housing” may be included in the list as this item is being manufactured /  can be  manufactured in MSE’s with good quality as per the standard norms and in sufficient quantity.

3.    “Aurvedic & Unani Medicines”   may be included in the list as these medicines are largely manufactured in MSE’s in India as per GMP norms.

4.    At Serial Number 223 of the list  “PVC pipes upto 110 mm” are included but alongwith PVC Pipes  MSE’s are manufacturing “PVC Pipe Fittings” also which is not included in the list. As such, it is requested that PVC Pipe Fittings may also be included in the list.

5.    At Serial Number 235, 236, 237,238 & 239 of 358 items, Rubber Balloons, Rubber Cord, Rubber Hoses (Unbranded), Rubber Tubing (Excluding braided tubing) & Rubberised Garments Cap and Caps  respectively are included in the list. However, there are about 1000 rubber items which are manufactured in MSE’s. As such it is proposed that in the list of items reserved for MSE’s items at 235 to 239 may be replaced by “All Rubber Products”.

Reservation of products for exclusive manufacture in the small scale sector was introduced for the first time in 1967 with the reservation of 47 items. This number increased progressively to 55 in 1970, 128 in 1971, 177 in 1974, and 180 in 1976 respectively.

After the introduction of a National Industrial Classification (NIC) code the list was recast. As a result, the list of reserved items was expanded from 504 to 807 in 1978 and was 836 in 1989. Of this, 39 items were dereserved in four phases viz., 15 items in 1997, 9 items in 1999, and 15 in 2001. Subsequently, 51 items were dereserved in May 2002, 75 items in May 2003 and 85 items in October 2004.

Reservation affords support to MSMEs against competition from large/ multinational companies. The policy received statutory backing in 1984 under Section 29B of Industries (Development & Regulation) Act, 1951. (KNN Bureau)