More favourable sourcing policy for MSMEs soon

Our Bureau Chennai | Updated on July 02, 2014

Small firms may look forward to better demand in the coming months with the Public Procurement Policy for Micro and Small Enterprises gaining traction. By April 2015, it is mandatory for all Public Sector units, Central Ministries and Departments to raise procurement of products and services from MSMEs to 20 per cent of their annual purchases.

“This will be a great booster for small firms across the country,” said S Sivagnanam, Additional Industrial Advisor, MSME Development Institute, Chennai.

Speaking at a workshop on clean technology organised by the Federation of Indian Chamber of Commerce and Industry, he said a new Web site msmeconnent.com will act as an interface for industrial buyers. Small enterprises should present product details and updates on new technologies on the portal.

The development institute is also working on a sub-contractor exchange software that allows public sector units to expedite the process of finding a sub-contractor. “

Leveraging investments

The portal will also serve as a platform for MSMEs to showcase their intellectual properties and receive advice on patenting modalities,” he added.

In Tamil Nadu, where 14.5 lakh small firms do business, the peak power shortage for industrial units has touched 3,000 MW. KN Basha, an industrialist and member of Tamil Nadu Small and Tiny Industries Association, said the small industry has not been able to leverage their investments due to lower production capacities after the long power outages put factories out of action.

P Murari, Advisor to Ficci President, says a sympathetic attitude from banks and sourcing commitments by the large industry will help the sector which makes half of the manufacturing sector.

M Nandakumar, Convenor of the energy panel of the State FICCI unit, said about India’s $1.7 trillion economy lost $68 billion last fiscal to power shortages. The accent has been on scaling renewable energy and cutting fossil fuel dependence. With a large portion of the country factories falling under the MSME category, adopting green technologies attract costs they cannot afford, he said.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on July 02, 2014
This article is closed for comments.
Please Email the Editor