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National Board for MSEs meets to discuss procurement policy

Updated: Dec 12, 2013 12:50:17pm
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New Delhi, Dec 12 (KNN) During the 10th meeting of the National Board for Micro, Small and Medium Enterprises (NBMSE), FOSMI would be presenting comments of its members on the Public Procurement Policy for MSEs.

The meeting is being held here today, according to FOSMI (Federation of small and medium industries, West Bengal).

In preparation for the meeting, FOSMI had invited all its members to comment on the various sections of the Procurement Order of March 2012.

According to the Order, all Central Government Ministries, Departments and Public Sector Undertakings shall procure minimum of 20 per cent of their annual value of goods or services from Micro and Small Enterprises. 
 
Further, “…the Public Procurement Policy shall apply to Micro and Small Enterprises registered with District Industries Centers or Khadi and Village Industries Commission or Khadi and Village Industries Board or Coir Board or National Small Industries Corporation or Directorate of Handicrafts and Handloom or any other body specified by Ministry of Micro, Small and Medium Enterprises,” it said.
 
The Public Procurement Policy rests upon core principles of competitiveness, adhering to sound procurement practices and execution of orders for supply of goods or services in accordance with a system which is fair, equitable, transparent, competitive and cost effective.   

In addition, “For facilitating promotion and development of micro and small enterprises, the Central Government or the State Government, as the case may be, by Order notify from time to time, preference policies in respect of procurement of goods and services, produced and provided by micro and small enterprises, by its Ministries or Departments, as the case may be, or its aided institutions and public sector enterprises,” it said. 

MSMED Act-2006 provides for establishment of National Board for Micro, Small & Medium Enterprises (NBMSME) and its functions etc.
 
NBMSME was established on 15th May 2007 consisting of 47 members including Chairman, Vice Chairman and Member Secretary in accordance with the Sub Section 1 of Section 3 of MSMED Act, 2006 and National Board for Micro, Small & Medium Enterprises Rules, 2006. The Minister in-charge of Ministry of MSME is ex-officio Chairman of the National Board.
 
Among its functions are to examine the factors affecting the promotion and development of Micro, Small and Medium Enterprises and review the policies and programmes of the Central Government in regards to facilitating the promotion, development and enhancing the competitiveness of such enterprises and the impact thereof on such enterprises.
 
It also makes recommendations for facilitating the promotion and development and enhancing the competitiveness of the micro, small and medium enterprises; and advises the central government of the use of funds.  (KNN/ES)

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