Government sets up grievance redressal cell for micro and small enterprises

NEW DELHI: Government has set up a grievance redressal cell which receives complaints of micro and small enterprises as well as industries' associations and resolves their issues.

Micro, Small and Medium Enterprises Minister Kalraj Mishra told Lok Sabha during Question Hour that all complaints received by the cell are attempted to be resolved within 15 days.

Mishra said the cell also clarifies issues relating to the procurement policy raised by central public sector undertakings.

He said major problems and issues which have emerged include not following exemption from earnest money deposit as mandated by the policy and unreasonable conditions such as high turnover limit imposed in tenders which debar participation of Micro and Small Enterprises (MSEs) in tenders besides others.

Clarifications are sought on 358 items reserved exclusively for procurement from MSEs as mandated in the policy and on the validity of Entrepreneurial Memorandum-II which is issued by district industries centre for registering enterprises, he said, adding this EM-II is free from validity period and does not require renewal.

Mishra also said for procurement from Micro and Small Enterprises, Directorate General of Supplies and Disposals has valid rate contracts for 16 product categories, which are reserved for exclusive purchase from MSEs.