The new public procurement policy of the Centre will provide good opportunities for micro and small enterprises. This was revealed at the vendor development programme organised by the MSME (micro, small and medium enterprises) Institute at Kanara Small Industries Association here on Tuesday.
Speaking on the occasion, Dr P.K. Chatterjee, Director, MSME Development Institute, Mangalore, said the public procurement policy will be effective from April 1.
Under the policy, Central Government departments and public sector undertakings (PSUs) are expected to set an annual goal for procurement from MSEs (micro and small enterprises) at the beginning of the year.
Minimum level
The objective is to achieve an overall procurement goal of a minimum 20 per cent of the total annual purchases of the products or services produced or rendered by MSEs over a period of three years.
This 20 per cent target of annual procurement from MSEs includes 4 per cent of procurement from MSEs owned by SC/ST entrepreneurs.
To enhance the participation of SCs/STs in government procurement, the Central Government departments and PSUs will take necessary steps, including organising special vendor development programmes and buyer-seller meets, he said.
At the end of three years, the overall procurement goal of minimum 20 per cent will be made mandatory. Non-conforming departments will be required to provide reasons for the same to the review committee set up under the policy.
Market access
Mr Chatterjee said that the policy will help promote MSEs by improving their market access and competitiveness through increased participation in government purchases. This will also encourage linkages between MSEs and large enterprises, he said.
Mr S.G. Hegde, Joint Director, District Industries Centre, Karnataka Government, said that MSMEs can also look at the State Government departments for procuring orders. He suggested that they follow the tender bulletin prepared by the office of the deputy commissioner of the district in this regard.