SMEs to get 15% govt business
The ministry of micro, small and medium enterprises (MSME) has floated a proposal under the MSME Development Act to ensure that all ministries and government departments source 15% of their procurement from small scale industries.
By Jyoti Johar & Gunjan Pradhan Sinha, ET Bureau |
NEW DELHI: The ministry of micro, small and medium enterprises (MSME) has floated a proposal under the MSME Development Act to ensure that all ministries and government departments source 15% of their procurement from small scale industries. At a time when many SSI segments have been opened up for large players, the move would act as a cushion to small units by assuring a minimum volume of orders every year.
The proposal has been circulated for comments of other ministries. If the proposal gets Cabinet nod, it will become mandatory for ministries and government-aided agencies to purchase from the SSI units. ���The biggest government procurers are the ministry of defence and railways. If they source 15% of their needs from SSI units, small industries will be in a better position to keep production rolling,��� a senior government official said.
The proposal has been circulated for comments of other ministries. If the proposal gets Cabinet nod, it will become mandatory for ministries and government-aided agencies to purchase from the SSI units. ���The biggest government procurers are the ministry of defence and railways. If they source 15% of their needs from SSI units, small industries will be in a better position to keep production rolling,��� a senior government official said.
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