Ludhiana, July 4 (KNN) Despite the mandate to procure 20 per cent of the MSME sector, the tenders out rightly ignore the small entrepreneurs and are tweaked in a way to favour the big players only. These concerns have been consistently raised by the MSME manufacturers across many states who feel that on one side the government is promoting Make in India while on the other sides MSMEs are kept away from opportunities.

One such is a case of Ludhiana Cycle Manufacturers, who alleged that the cycle tenders floated by the states are meant “only” for the bid industries. “MSMEs end up getting no benefit out of it,” the manufacturers said.

Talking to KNN, General Secretary of United Cycles and Parts Manufacturers Association (UCPMA) Rajeev Jain said that this year several states came out with tenders to buy cycles which totalled to approximately 50 lakh, but the tenders have such criteria which do not fit the MSME sector into it.

He alleged that they put clauses such minimum turnover of an industry should be Rs. 200 to 300 crores for bidding the tender despite knowing the fact that MSMEs do not have such huge turnovers.  

“No state follows the central procurement policy to procure 20 per cent from the MSMEs,” said UCPMA general secretary.

The Ludhiana cycle industry has been facing stiff competition from Chinese imports. Exports from Ludhiana have declined, while the imports from China have shown a quantum increase.

Five years ago, the export of bicycle and its parts from Ludhiana was put at Rs 1,400 crore while imports from China were less than Rs 600 crore. However, now the situation has reversed with Ludhiana’s exports falling to Rs 800 crore and Chinese imports valued at `1,500 crore. In this condition government tenders are only the ray of hope for the local MSMEs.

Jain further said, “They also say that MSMEs don’t deliver on time. But they do take the caution money which an entrepreneur can lose it if he does not deliver on time.”

“It is the complete monopoly of big houses”, he cried.

Also read: http://knnindia.co.in/news/newsdetails/msme/medium/eligible-msmes-ignored-in-railway-tenders (KNN/ AR)