Monday, 21 March 2016

Buying from MSMEs: In FY16, 38 PSUs met 20% target

A total of 38 Central public sector undertakings (PSUs) have achieved the target of 20 per cent public procurement from medium, small and micro enterprises (MSMEs) in 2015-16.
This was revealed in a review meeting chaired by MSME Minister Kalraj Mishra here on Friday.
There are a total of 298 Central PSUs, according to official figures.

Mandatory buying

“Thirty eight CPSUs have achieved the target of 20 per cent public procurement from MSMEs in the just concluded financial year,” said an official release by the Ministry, after the meeting, attended by representatives from 44 Central PSUs, was held to review the implementation of the 20 per cent public procurement policy made mandatory from April 2015.

Incidentally, in a review meeting held in February this year, the Ministry had found that the share of MSME procurement by Central PSUs was less than 10 per cent, against the mandatory 20 per cent, and that of SC/ST entrepreneurship less than 0.2 per cent, against the mandatory 4 per cent, according to an earlier Ministry statement. 

Mishra had then directed Secretary (MSME) to identify the top 50 Central PSUs and get a meeting organised at Minister’s level to “sensitise” them toward meeting the requirement of the public procurement target. 

Boosting start-ups
To promote start-ups, in Friday’s meeting Mishra also urged Central PSUs to relax the norms of ‘prior experience and prior turnover’ for enterprises that can deliver the goods as per prescribed technical and quality specifications.

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