Government has taken initiatives to improve the role of MSMEs: Parikkar

New Delhi, August 12 (KNN) Union Defence Minister Manohar Parrikar today said that the Government has taken several initiatives to enhance the role of MSMEs in the defence sector.  Augmenting the role of MSMEs in defence sector is one of the defining features of Defence Procurement Procedure (DPP)-2016. 

He said that in the DPP-2016, the ‘Make’ procedure has been recast wherein greater impetus has been provided to MSMEs, by reserving certain categories of ‘Make’ Projects exclusively for them.  The eligibility criteria for Shortlisting Indian Vendors, for participation in ‘Make’ projects, have been made liberal for MSMEs.  Besides this, a multiplier of 1.5 is permitted for discharging of offset obligations through MSMEs as Indian Offset Partner.

Explaining further, Parrikar informed that in addition, the Government has launched various schemes for supporting MSMEs so that they can supply their products to various organizations including defence sector.

 “The Lean Manufacturing Competitiveness Scheme was launched to improve the quality of the products of MSMEs.  The MSMEs can upgrade their machinery under Credit Linked Capital Subsidy Scheme (CLCSS) and Technology Up-gradation Scheme (TEQUP).  The units can also avail credit guarantee trust fund for MSEs to raise loan without collateral security for enhancing their competitiveness.  MSMEs can also participate in Domestic and International Trade Fairs under Marketing Assistance and Technology Up-gradation (MATU) scheme,” he elaborated.

Minister said that in 2016-17 Rs. 6506.46 Crore and Rs. 3317.54 Crore procurement has been done from Indian and foreign vendors respectively upto 30th June 2016.

The Defence Minister Manohar Parrikar has given this information in a written reply to Lok Sabha. (KNN Bureau)