Policy to procure 20% of products via MSMEs recommended

To help the small and medium enterprises in these trying times, the central government is working on a new procurement policy, which will make it mandatory for government departments to procure 20% of all products and services through the micro, small and medium enterprises (MSMEs).

The Union ministry of MSME is trying to evolve a consensus among different government departments to this end.

Speaking to FE on the sidelines of a seminar, Economic Freedom: Relevance for Economic

Development’, organised by the Federation of Indian Micro and Small and Medium Enterprises (FISME), secretary in the ministry Dinesh Rai, has moved a proposal to make it mandatory for various ministries and departments to buy 20% of their total requirement from the sector.

Courtesy: The Financial Express (July 15, 2009)