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Target of 20 pc procurement from micro, small enterprises unlikely to be met

Updated: Nov 13, 2013 04:34:54pm
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New Delhi, Nov 13 (KNN) The Central Public Sector Enterprises (CPSEs) are facing an uphill task in fulfilling the target of procuring minimum 20 per cent of their total purchases from the micro and small enterprises (MSEs) due to limited number of existing suppliers from the sector and non-availability of data about MSEs which can satisfy strict requirement of quality and delivery schedules of CPSEs.  
 
These facts came to light during the first consultation on ‘Public procurement policy for  micro and small enterprises order 2012’, organised by GIZ jointly with the Ministry of MSME, Government of India after promulgation of Public Procurement Policy 2012. The meet was attended by representatives from leading CPSEs, senior Government officers and representatives from the industry associations.
 
While there is a stipulation of compulsorily sourcing of at least 20 per cent of their procurements from the MSEs by the year 2015, as per the information available with the Ministry, at present only 32 CPSEs are procuring more than 20 per cent from the MSEs. The remaining 147 CPSES are at various stages of implementation of the order.
 
During the meeting representatives of the CPSEs mentioned a host of real life problems towards achieving the target set, particularly non availability of information about possible suppliers from the MSE sector, breaking down of order sizes to the level of the capacities of typical MSEs etc. It was informed that the office of DC (MSME)  under the Ministry will host a web based  database where Items of requirement of CPSEs  and items produced by MSEs will be available  at HS code level for ease of linking and matchmaking.
 
Representatives of the Federation of Indian Micro, Small and Medium Enterprises (FISME) raised the issues of accounting problem in capturing data for the MSE sub contractors of the large suppliers of CPSEs and the huge amount of payment of MSE suppliers held up with some CPSEs. (KNN/DB)
 

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