MP Govt exempts MSMEs from earnest deposits in departmental tenders; but exemption only if registered with NSIC

Indore, May 15: The Madhya Pradesh government has exempted micro, small and medium enterprises (MSMEs) from depositing earnest money in departmental tenders after many MSMEs companied about the earnest money being blocked.

The move aims to boost participation of MSMEs in tenders and also resolve the delay in payments issue.

The Association of Industries Madhya Pradesh (AIMP) has been raising the issue of MSMEs facing problems due to money being blocked and late refunds by various departments.

However, talking to KNN, Senior Vice President of AIMP, Pramod Dafaria said, “The exemptions are being given only to the MSMEs which are registered with the NSIC. But, not all MSMEs or suppliers deal with government departments.”

There are many who are supplying to departments like PWD, Nagar Palika etc..so what about them, Jain highlighted.

Moreover, Jain said, NSIC is not taking initiative to come forward and create awareness amongst MSMEs over benefits of registering with it.

He said, “Most of the MSMEs here are not aware about the exemption of earnest money from departmental tenders and about benefits of registering with NSIC.”

Jain said NSIC should conduct meetings/ programmes and interact with MSMEs on this.

The small scale industries registered under the MSME department can avail exemptions from earnest money by declaring their registration numbers. The earnest money in government tenders varies from 2 to 5 per cent.