38 PSUs achieved target of 20%, few upto 55% procurement from MSMEs: Kalraj Mishra

New Delhi, Mar 18 (KNN) As many as 38 Central Public Sector Units (CPSUs) have achieved the target of 20% public procurement from MSMEs in the just concluded financial year, said Union MSME Minister Kalraj Mishra.

The Minister, in his tweet, also highlighted that, “Though it is mandatory for PSUs to procure only 20% from MSME, I am glad that few PSUs have procured up to 55% from MSMEs.”

This was revealed in a meeting between the MSME Ministry and CPSUs on Thursday to review the implementation of Public Procurement from MSMEs.

Mishra highlighted the importance of this policy which was made mandatory by the Government from April 2015, to the promote MSMEs and Start-ups in the country.

He said that to promote the Startups in India his ministry has issued a circular dated 10th March 2016 that allows Central PSUs to relax the norms of ‘prior experience and prior turnover’ for those MSMEs who can deliver the goods as per prescribed technical & quality specifications.

He also highlighted that the CPSUs have to take proactive action to achieve targets of 20% annual procurement from MSMEs including 4% from MSMEs owned by SC/STs.

Mishra mentioned that a SC/ST Hub has been setup in his ministry to promote the development of SC/ST entrepreneurs. This Hub will provide avenues for SC/ST entrepreneurs under public procurement policy, encourage them to register under Udyog Aadhar Memorandum, encourage them to register products manufactured by them, facilitate their participation in vendor development programmes organized by CPSUs and sponsor their applications under PMEGP. 

Minister of State for MSME Giriraj Singh also highlighted the importance of developing critical components, import substitution, maintenance of spares of high tech machines and equipments by CPSUs. He also highlighted that organizing vendor development programmes and entering into rate contracts with MSMEs are the key to enhancing public procurement. 

The meeting was attended by representatives from 44 CPSUs. During the meeting, issues related to achieving 20% procurement targets were highlighted and the ways to achieve them were also discussed. (KNN Bureau)