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Rampant misuse by MNCs undoing ‘Make in India’: FISME

Updated: Sep 24, 2020 09:23:20am

Rampant misuse by MNCs undoing ‘Make in India’: FISME

New Delhi, Sept 24 (KNN) One of the flag-ship initiatives of Prime Minister Narendra Modi, the ‘Make-in-India’ programme, is being hijacked by Multi-national companies so says the chief MSME body of the country- Federation of Indian Micro and Small & Medium Enterprises (FISME).

FISME highlighted the instances of misuse before the Covid Empowered Group-3 chaired by Amitabh Kant, the CEO of NITI Aayog,  during the meeting with three apex chambers recently.

“The MNCs are getting the Pre-qualification Requirements (PQRs) set in such a manner in tenders that only they can qualify but Indian companies including MSMEs which have newly acquired the capabilities through Technology Transfers are crowded out”, FISME mentioned.  

According to FISME, in every major sector there are two-three MNCs that rule the roost and don’t allow any desi company to develop.

Citing a recent example, FISME  highlighted that how a medium sized company which acquired technology to manufacture “Made-in-India’ Gas Insulated Switchgear in technical collaboration with a leading global manufacturer and offered at substantially low cost to power utilities, was disqualified through a clause in PQRs  that only the experience in India would be counted to qualify. The experience of foreign partner was not taken into account.

“How a new JV would have experience in India without getting an order for a product that is only used by public utilities”, FISME asked.

FISME posited that the exclusionary clauses frequently used  are condition of very high turnover criteria or requirement of extensive Bank Guarantees or Performance Guarantees, experience of certain years which would allow only a select suppliers or requirement of accessories/ parts of proprietary nature which only select suppliers can access.

Many a times, the tenders would specify product of a particular brand with obvious consequences.

FISME has suggested that Government should set-up a mechanism to hear out these complaints of subversion on PQRs with a malafide intention to Make in India achieve its objectives.

It further emphasized that insurance companies should be allowed to offer Bank Guarantees to bring down the cost for MSMEs. It is said that in many developed countries like the USA offer BGs at a very economical rates.


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