No provision in Procurement Policy for foreign investors purchasing 30% from MSME
Updated: Aug 14, 2014 02:51:27pm
New Delhi, Aug 14 (KNN) The Public Procurement Policy has no provision for foreign investors to make 30 per cent purchase from MSME, said Union MSME Minister Kalraj Mishra.
The Public Procurement Policy for MSME order 2012 has mandated Every Central Ministry/Department/PSU shall set an annual goal for procurement from the MSE sector at the beginning of the year, with the objective of achieving an overall procurement goal of minimum 20 per cent of the total annual purchases from the products or services produced or rendered by MSEs, Mishra said in a written reply to the Lok Sabha yesterday.
Out of 20 per cent target of annual procurement from MSEs, a sub-target of 4 per cent (i.e., 20 per cent out of 20 per cent) will be earmarked for procurement from MSEs owned by SC/ST entrepreneurs.
The policy mandates that after a preparatory period of three years – April 1, 2015, overall procurement goal of minimum 20 per cent shall be made mandatory for all the Central Ministries/Departments/PSUs, he said.
The Public Procurement Policy has no provision for foreign investors to make 30 per cent purchase from MSME, he added.
According to Department of Industrial Policy and Promotion (DIPP) circular on Consolidated FDI Policy that, in terms of Single Brand product retail trading “In respect of proposals involving FDI beyond 51 per cent, sourcing of 30 per cent of the value of goods purchased, will be done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors.
Further, the policy said that, in terms of Multi Brand Retail Trading “At least 30 per cent of the value of procurement of manufactured/processed products purchased shall be sourced from Indian micro, small and medium industries, which have a total investment in plant and machinery not exceeding USD 2.00 million. (KNN/SD)
The Public Procurement Policy for MSME order 2012 has mandated Every Central Ministry/Department/PSU shall set an annual goal for procurement from the MSE sector at the beginning of the year, with the objective of achieving an overall procurement goal of minimum 20 per cent of the total annual purchases from the products or services produced or rendered by MSEs, Mishra said in a written reply to the Lok Sabha yesterday.
Out of 20 per cent target of annual procurement from MSEs, a sub-target of 4 per cent (i.e., 20 per cent out of 20 per cent) will be earmarked for procurement from MSEs owned by SC/ST entrepreneurs.
The policy mandates that after a preparatory period of three years – April 1, 2015, overall procurement goal of minimum 20 per cent shall be made mandatory for all the Central Ministries/Departments/PSUs, he said.
The Public Procurement Policy has no provision for foreign investors to make 30 per cent purchase from MSME, he added.
According to Department of Industrial Policy and Promotion (DIPP) circular on Consolidated FDI Policy that, in terms of Single Brand product retail trading “In respect of proposals involving FDI beyond 51 per cent, sourcing of 30 per cent of the value of goods purchased, will be done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors.
Further, the policy said that, in terms of Multi Brand Retail Trading “At least 30 per cent of the value of procurement of manufactured/processed products purchased shall be sourced from Indian micro, small and medium industries, which have a total investment in plant and machinery not exceeding USD 2.00 million. (KNN/SD)
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