The new public procurement policy of the Centre provides good opportunity for micro and small Enterprises.
This was revealed at the vendor development programme organised by MSME (micro, small and medium enterprises) Institute at Kanara Small Industries Association here on Tuesday.
Speaking on the occasion, Dr P.K. Chatterjee, Director of MSME Development Institute, Mangalore, said that the public procurement policy will be effective from April 1.
Under the policy, the Central Government departments and public sector undertakings shall set an annual goal for procurement from the MSE (micro and small enterprises) at the beginning of the year. The objective is to achieve an overall procurement goal of minimum 20 per cent of the total annual purchases of the products or services produced or rendered by MSEs from these sectors in 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. For enhancing participation of SCs/STs in the government procurement, the Central Government departments and PSUs will take necessary steps, including organising special vendor development programmes, 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, he said.