Wednesday, November 2, 2011

Cabinet gives green signal to Public Procurement Policy for micro and small enterprises

The Cabinet has given its nod to the Public Procurement Policy for goods produced and services rendered by Micro and Small Enterprises (MSEs) by the Central Ministries/Departments/PSUs. This will be notified under Section 11 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.
The policy has been approved just ahead of the assembly elections in five Indian states consisting of Uttar Pradesh. This policy fixes an annual target of 20% procurement for the Central Government departments and also the public sector undertakings (PSUs) from MSEs.
Within this limit, 4% of the orders needs to be placed to the SC/ST entrepreneurs and 16% for the others.
While speaking the Micro, Small and Medium Enterprises (MSME) Minister Mr Virbhadra Singh has stated with the declaration of the new policy, PSUs are likely to purchase goods worth Rs 35,000 crore from the MSEs, out of which Rs 7,000-crore business would go to the SCs/STs.

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