MSME plans to set purchase targets for govt departments
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Last Updated: Tuesday, July 28, 2009, 18:24
New Delhi: The MSME ministry is working on a 'Procurement Policy' for the sector, which would set targets for the government departments and institutions to source their requirement from the tiny and small units, a top official on Tuesday said.

"We are trying to work out a new purchase policy for procurement of MSME products by the government and trying to convince major buyers like the defence and the railways of the need to adhere to such a step," Micro, Small and Medium Enterprises Secretary Dinesh Rai said at a Ficci function.

Currently, the procurement policy is in the form of an order issued by the ministry that lists 358 items, which PSUs have to purchase only from the MSME sector.

On the lines of the purchase policy prevalent in the US, the ministry plans to come out with a policy that is likely to fix a certain percentage that government departments would have to buy from MSMEs, he said.

The global slump in demand has impacted MSME sectors like textiles and leather, which depend heavily on exports.

The sector, which employs about 42 million people, accounts for 45 per cent of the country's industrial output and about 40 per cent of exports.

Rai further said that the ministry is planning to set up an information centre for MSMEs. Entrepreneurs can seek information from the centre regarding the sector.

Bureau Report

First Published: Tuesday, July 28, 2009, 18:24

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