[ZESTCaste] Small units, SCs/STs to get preference in government purchases

http://profit.ndtv.com/news/show/small-units-scs-sts-to-get-preference-in-government-purchases-185382

Small units, SCs/STs to get preference in government purchases

NDTV Correspondent, November 1, 2011, (Mumbai)

The Union Cabinet on Tuesday cleared the public procurement policy,
which state-run departments and PSUs will aim to give preferences to
micro and small entrepreneurs (MSEs), including those belonging to
SCs/STs.

Within this limit, four per cent of the orders should be placed to the
SC/ST entrepreneurs and 16 per cent for others.

Public procurement of goods and services on behalf of a government
agency, accounts for 20% in developing countries like India. The
Centre was procuring materials worth Rs. 11 lakh crore; however there
was no proper policy on procurement.

According to the new policy guidelines, all ministries and public
sector units will have to mandatorily acquire minimum 20% of products
from MSMEs.

Presently, the government agencies procure 4-5% annually from MSMEs
and 4% of the total 20% is reserved for SC/ST categories.

Briefing reporters after the Cabinet meeting, Information and
Broadcasting Minister Ambika Soni described the decision as
"path-breaking". It was also in line with the "Congress manifesto",
she said.

Elaborating, Micro, Small and Medium Enterprises (MSME) Minister
Virbhadra Singh said with announcement of the new policy, PSUs are
expected to buy goods worth Rs. 35,000 crore from the MSEs, of which a
business of Rs. 7,000 crore would go to the SCs/STs.

India's MSME sector plays a crucial role in the socio-economic
development of the country. There are 28.5 million MSMEs in India that
employ about 60 million people, contribute about 8% to its GDP, 45% to
its industrial output and 40% to its exports.

Read more at: http://profit.ndtv.com/news/show/small-units-scs-sts-to-get-preference-in-government-purchases-185382?cp

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