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The government will make it mandatory for all Central public sector undertakings (PSUs) to make 20 per cent of their purchases from medium, small and micro enterprises (MSMEs) from April 1, 2015. “A penalty provision is also being considered,” said Kalraj Mishra, MSME Minister, in the Lok Sabha on Monday.
The Centre had, in an order in 2012, issued directions to all Central PSUs to procure a minimum 20 per cent of products and services from MSMEs, 4 per cent of which had to be from enterprises owned by the Scheduled Castes and Scheduled Tribes (SCs/STs). However, not all PSUs have complied with this order, Mishra said during Question Hour, adding that “it will not be an exaggeration to say that the Railways” has not been following the 20 per cent procurement norm.
When former MSME Minister KH Muniyappa asked how many purchases had been made from SC/ST-owned enterprises, Mishra said such enterprises had not been identified as yet which was creating hurdles. He said the government was making efforts to meet the 4 per cent procurement target from SC/ST-owned enterprise through various initiatives, such as vendor awareness programmes, stakeholder workshops among others. In a written reply, the Minister said “Communications are being issued from Ministry of MSME to all Central Ministries, departments, CPSUs to comply with all the provision of the Public Procurement Policy for MSE, Order 2012.”
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