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Odisha MSME Dept to ensure strict compliance of 20% procurement norm

Bhubaneswar, Jun 2 (KNN)  In a recent assessment of central organisations and public sector undertakings, it was revealed that they paid scant attention to the 20 per cent procurement policy of the MSMEs, as there was very low procurement of products and services from them, according to a media report.
To ensure strict compliance of the MSME procurement policy by purchasing organisations, the state MSME Department of Odisha has decided to intervene.
According to the media report, the MSME Secretary has asked PSUs such as East Coast Railways, NALCO, SAIL, NTPC, Neelachal Ispat Nigam Limited (NINL), HAL, MCL and Indian Rare Earths Limited to adhere to the policy to procure 20 per cent from MSMEs and at least 10 per cent from local enterprises.

Struggling for survival due lack of market support, the local MSME units, have raised the issue with the Government.  In response, the MSME Department has invoked the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 to send a strict message to the PSUs, the report said.

The policy order has made minimum 20 pc purchase mandatory from MSMEs by April 1, 2015.

According to the report, the State Government has been advocating at least 10 pc of the total purchase of products by large scale industries and purchasing organisations in the State from local enterprises.

Meanwhile, the state MSME Secretary has written to the Director, Export Promotion and Marketing to gather information from different Government departments on purchase from local MSEs, advising them to maintain a database on the same.

He said that the total purchase made by the Government departments should also be submitted to the MSME Department as soon as possible.