MSME Ministry asks PSUs to give details of purchases from MSEs

NEW DELHI: The Ministry of Micro, Small and Medium Enterprises (MSME) today said it has asked PSUs and other departments to provide details about their procurements from small units during 2012-13.

"We had some constructive discussions with PSUs. We are getting information from PSUs as to how much they have procured from Micro, Small and Medium Enterprises," MSME Secretary Madhav Lal said at National Rubber Conference here.

"We do believe that the policy will bring cheer to both PSUs and MSEs, and country at large," Lal said.

Besides, he said the details of annual procurement for the current fiscal have been sought from PSUs and ministerial departments.

The government had notified the Public Procurement Policy with effect from April 1, 2012.

Under the policy, every central ministry/PSU has to set an annual goal for procurement from MSEs at the beginning of each financial year with the objective of achieving an overall procurement of minimum 20 per cent of total annual purchases of products produced/services rendered by such units.

The MSME sector contributes over 8 per cent to the country's Gross Domestic Product ( GDP) and accounts for 45 per cent of the manufacturing sector.

There are around 3.6 crore such enterprises, employing over 8 crore people.