CODISSIA seeks relaxation in defence procurement policy

Coimbatore, Dec 1 (KNN) Coimbatore District Small Industries Association (Codissia) has asked the government to relax the defence procurement policy so that more Micro, Small and Medium-scale Enterprises (MSMEs) can participate in the defence sector.

According to a press statement, this was one of the resolutions passed at the annual meeting of the Association held on Monday and it was also decided to appeal to the Central Government to treat MSMEs as a priority sector and earmark a special budget provision for the sector.

''The government should constitute a committee to regulate the 25 per cent compulsory purchase obligations of Public Sector Undertakings, defence, and railways to MSMEs. The obligatory purchase from MSMEs should be increased to 40 per cent,'' read the statement.

The statement also said that the association has asked the government to come out with a scheme to help MSME in upgrading their technologies.

''The accelerated depreciation for three years should be extended to all MSMEs that go for expansion or modernisation,'' it said.

Meanwhile on Monday, M Ramesh Babu was elected president of the Association for 2020-22 while M Karthikeyan as its secretary for 2020-2022

The elections took place at the association's 51 stannual general meeting here.