Draft Policy For Procurement Preference in MSMES;Govt
Draft Policy For Procurement Preference in MSMES;Govt The center appeared with a draft policy for micro, small & medium enterprises (MSME) Development Act 2006, for price preference on Sep. 18, 2007.
The policy was presented at the second meeting of National Board for MSME.The salient features of price preference policy for MSEs interalia are :
- Central government ministries, its departments, aided institutions and PSUs under it, shall procure at least 20% of the value of their total annual purchases from micro & small enterprises for the products or services produced and provided by such enterprises or national small industries corporation (NSIC) as supplier.
- At least 22.5% of the purchases mentioned above will be procured by central government ministries or departments from MSEs owned by scheduled caste and scheduled tribes.
- At least 10% of purchases will be procured by the central government ministries or departments from such micro and small enterprises which are owned by women entrepreneurs.
- Micro & small enterprises registered with NSIC under its s ingle point registration scheme shall be entitled to various benefits and facilities like exemption from payment of earnest money, issue of tender sets free of cost etc.
- Existing reservation of 358 items for exclusive purchases from micro and small enterprises will be dispensed.
- NSIC as supplier engaged in selling goods by micro and small enterprises and rendering services which are provided by such enterprises would provide the required help in procuring and executing tenders for bulk supplies for micro and small enterprises individually or by forming consortia.
Besides, it was proposed to extend the benefit of Purchase Preference Policy of the ministry of Heavy Industries, Department of Public Enterprises, for purchases from PSU, shall be made available to NSIC as supplier under this procurement policy of MSEs.
Further, it has been suggested that, the central government ministries/departments shall not impose the restricted conditions for MSEs in their tenders. The minimum turnover as one of the eligibility criteria for MSEs shall not be incorporated in tenders because it restricts MSEs participation.
