A policy proposal to make it mandatory for the government departments and PSUs to source 20 percent of their total procurement needs from small and micro units is under consideration of the government, Parliament was informed today.
New Delhi: A policy proposal to make it mandatory for the government departments and PSUs to source 20 percent of their total procurement needs from small and micro units is under consideration of the government, Parliament was informed today.
"The (proposed) policy on procurement by Public Sector Undertakings (PSUs) through Micro, Small and Medium Enterprises (MSMEs) is under consideration of the government," Minister for Heavy Industries and Public Enterprises Praful Patel said in a written reply to the Lok Sabha.
A task force on MSME chaired by the Prime Minister's Principal Secretary, T K A Nair, had proposed the policy for MSEs to help them improve their bottom lines and broadly encourage such businesses in the country.
Among other things, it proposes making it mandatory to source 20 percent of the total requirements of the government departments and PSUs through the MSMEs.
The task force had submitted its report to Prime Minister Manmohan Singh on January 2010.
The MSME sector employ about six crore people and contributes eight percent to the country's gross domestic product.
They account for 40 percent of India's total exports and over 45 percent of total manufacturing output.
Replying to another query in the Lok Sabha, Patel said, Five Central Public Sector Enterprises (CPSEs) have closed down during the last three years, since 2007-08.
These companies are the Indian Oil Technologies, Brushware Ltd, Pyrites Phosphates and Chemicals, National Instruments Ltd and Bharat Yantra Nigam Ltd.
During these three years, 122 employees ceased to be on the rolls of these five CPSEs. However, these employees were given full benefits of Voluntary Retirement Scheme (VRS)/Voluntary Separation Scheme (VSS), the minister said.
Besides, based on the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE), the government has approved the revival packages in respect of 42 CPSEs including Hindustan Salts, HMT Bearings, NEPA and Andrew Yule and Co.
In December 2004, the government had set up the BRPSE to advise the government on the revival and restructuring of sick/loss making units.