Procurement policy for MSMEs in limbo | business | Hindustan Times
Today in New Delhi, India
Apr 29, 2017-Saturday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Procurement policy for MSMEs in limbo

The public procurement policy for the MSME sector, which would have made it mandatory for all ministries and public sector undertakings to procure 20% of their total annual purchase volume from the MSMEs, has been delayed due to a spanner thrown in the works by the ministry of social justice and empowerment. Debobrat Ghose reports.

business Updated: Mar 02, 2011 20:57 IST
Debobrat Ghose

The public procurement policy for the MSME sector, which would have made it mandatory for all ministries and public sector undertakings to procure 20% of their total annual purchase volume from the MSMEs, has been delayed due to a spanner thrown in the works by the ministry of social justice and empowerment .

"The ministry has demanded 20% reservation for SC & ST category against the proposed 10%, which has delayed the process," a ministry source said.

Initially, lower procurement targets will be fixed, which will be taken to 20% over a period of three years.

The MSME's share of estimated annual procurements, worth over Rs 1.7 lakh crore, is now a mere 5% (Rs 8,500 crore).

Is Your Couch Making You Cough?
Promotional Feature