Lucknow, Jan 19 (KNN) The UP Cabinet yesterday approved the state MSME policy under which it will empower the State Directorate of Industry and Industrial Promotion to monitor priority to micro and small enterprises in Government Rate Contracts.

In the new Industry Policy of the State, it has been mentioned that the Sate Cabinet has decided to introduce a centralised procurement system through rate contracts which will be implemented by the State Directorate of Industry and Industrial Promotion.

The Directorate will also ensure priority to micro and small enterprises in state procurements through rate contracts. This step will encourage small and micro enterprises of the state to participate in Government procurements.

The decision to allot the work of centralised procurements through rate contract, to the Directorate of Industry and Industrial Promotion, was taken keeping in view the demands of the Industry Associations of the state to bring transparency and uniformity in the Government procurements.

Implementation of a centralised procurement system will provide relief to the entrepreneurs from repeated tendering, multiple registration and submission of separate earnest money deposits, Security Deposits etc for separate Government tenders, said Debashish Bandopadhyay, Policy Expert from FISME.

The centralised procurement system will also save time and money of Government departments in repeated tendering and also ensure product quality and best price available, the expert added. (KNN Bureau)