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Taking cue from centre, UP govt to mandates 25% procurement from state MSMEs

Updated: Mar 16, 2020 05:55:52am
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Taking cue from centre, UP govt to mandates 25% procurement from state MSMEs

Lucknow, Mar 16 (KNN) Taking cue from central government of procuring 25 per cent from Micro, Small and Medium Enterprises (MSME) sector, the Uttar Pradesh government has too mandated 25 per cent procurement by the state government departments and public sector undertakings (PSU) from MSMEs in the state.

The state government has also fixed 3 per cent and 4 per cent compulsory procurement from women owned MSME units.

As per the MSME procurement policy 2020, has also mandated 5 per cent procurement from ‘green enterprises’, which are operated on eco-friendly standards and do not harm environment.

The new procurement policy is expected to provide a major boost to the sector, in the state where around 9 million MSMEs exit. The MSMEs have been due to economic slowdown.

The new policy has replaced the erstwhile UP MSME procurement policy 2014.

On several occasions, Adityanath has termed the MSME sector as the backbone of the state’s industrial growth, and said the government could act as a catalyst by promoting the MSME clusters.

On March 13th, Uttar Pradesh Chief Minister Yogi Adityanath had proposed branding of products made from cow dung and cow urine and link them to MSMEs sector.

He had also asserted that branding of products made from cow dung and cow urine through MSMEs can generate employment.

Speaking at a skill development programme in Lucknow March 13th the CM had said ''the government could start a project around cows, where research would be conducted on the benefits of cows, including use of its dung and urine. This could generate employment as well.''

“If we can brand products made out of cow dung and cow urine and sell them through the MSME sector we can generate employment for the youth,'' he added

In 2018, the state had launched its flagship one district, once product (ODOP) scheme to boost the MSME sector by promoting the traditional and indigenous industries of the state.

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