National Board of MSME meet to discuss draft PPP

19 Sep '07

2 min read

The second meeting of the National Board of Micro, Small & Medium Enterprises was held in New Delhi under the chairmanship of the Minister of Micro, Small & Medium Enterprises, Shri Mahabir Prasad. The main topic of the agenda related to the consideration of a draft Procurement Preference Policy for Micro and Small Enterprises.

Currently, the Government of India implements a non-statutory executive policy which extends price preference of 15 per cent and certain other facilities including reserving 358 products manufactured by Micro and Small Enterprises.

A proposal to have a statutory Government of India policy was discussed by Ministers from State Governments, Member Planning Commission Mrs. Syeda Hameed, Dr. M.K. Pandhe, President of Centre for Indian Trade Unions (CITU), representatives of MSME Associations from all over the country and Secretaries to the Government of India from the Departments of Commerce and Labour & Employment Ministries.

The proposal involved making 20 per cent of the purchases by Ministries, Departments and CPSUs, etc., of the Government of India from the products and services provided by MSE mandatory.

The proposal also includes provision of 22.5 per cent reservation for the products manufactured and services rendered by MSEs owned or managed by SCs/STs and 10 per cent from those owned/managed by women entrepreneurs.

It makes it mandatory for the Central Ministries/Departments and CPSUs to mention the percentage of purchases effected from Micro and Small Enterprises in their Annual Reports to be laid in Parliament.

During the meeting, several important suggestions were received from the Members. The Minister of MSME decided that these suggestions received from the Members of the National Board and the special invitees would be considered by the Ministry of MSME before finalizing a draft policy, which would then be circulated for consultations with other Ministries before finalisation.

Press Information Bureau Government of India

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