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Industry looks forward to surge in purchase from MSMEs

Updated: Jan 18, 2016 10:38:58am
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New Delhi, Jan 18 (KNN) MSME Minister Kalraj Mishra slammed the PSUs and government units for not following the government’s directive of making 20 per cent mandatory purchase from the MSMEs. 
 
Mishra said this while addressingthe inauguration ceremony of the three-day VenDex-2016 and MSME Manthan-2016 in Thane on Saturday.

“The government has made mandatory for the PSUs and government units that they should make at least 20 per cent of their purchases from micro, small and medium enterprises (MSMEs) only," Mishra said after inauguration. 

“The government units not following the directive is a serious issue” he added.

However, the MSME associations believe that the fault also lies in the definition of the policy.

“As per the policy stated earlier, there was no minimum criteria offered to PSU’s for making the purchase. Rather, it was taken to be a maximum value. It just stated that the government units should make a max purchase of 20 per cent,” said Dyaneshwar Gopale, President , Ambad Industries and Manufacturing Associations.

“The recent correction and redefinition of the policy have declared the 20 per cent purchase as a minimal level that every PSU has to follow,” he told KNN.

The President stated that up till now, the government units were not following the policy but the amendment in terminology might make the situation better.

“We are anticipating further involvement of PSUs in making purchase from MSMEs as per the redefined policy," he concluded.
 
The Ministry has amended the MSMED Act in which it has revisef the definition of MSMEs. However, the Bill is still pending in the Parliament. (KNN Bureau)

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