'Ensure 20% procurement from MSMEs for public sector projects'

MADURAI: The Union Ministry for MSME today said it had asked the Centre to ensure that all government departments, public sector undertakings and government-funded infrastructure projects procure 20 per cent of their requirements from Micro, Small and Medium Enterprises (MSME).

The Centre has been requested to ensure that all departments procured their requirements from the MSMEs, Secretary Dinesh Rai said here while addressing a seminar on MSME and cluster development organised by the Madurai District Tiny and Small Industries Association (MADITSSIA), Khadi and Village Industries Commission and District Industries Centre here last night.

He said he had assured the Space, Defence and Railway ministries that MSME products were of the 'best quality'. Even the Prime Minister and Finance Minister were stressing on promoting MSMEs, as they provided jobs to the youth, he said.

He said MSMEs got 33 per cent more allocation in the last Budget. It had been proposed to increase the share of loans for Micro Industries in the MSME segment from 45 to 60 per cent, he said.

The increase would help Micro Industries get loans to the tune of Rs 58,000 crore all over India, he said.