New purchase policy for MSMEs in the offing
A new purchase policy for providing market support to MSMEs is in the offing. The government will come out with a procurement policy that is likely to fix a certain percentage that government departments and ministries would have to buy from MSMEs.
A NEW purchase policy for providing market support to micro, small and medium enterprises (MSMEs) is in the offing. The government has studied the purchase policy prevalent in the US and will come out with an MSME procurement policy that is likely to fix a certain percentage that government departments and ministries would have to buy from MSMEs based on the total amount of purchases made by them annually. “We are trying to work out a new purchase policy for procurement of MSME products by the government and trying to convince major buyers like the defence and the railways of the need to adhere to such a step,” said Dinesh Rai, Secretary, Ministry of MSMEs, at the ‘Global SMEs Summit’, organised today by FICCI in collaboration with the Ministry of MSMEs and the Confederation of Indian Small and Medium Enterprises.
Rai said that the Limited Liability Partnership Act would give more comfort to MSME players and attract more capital into the MSME sector. He said, the government had asked banks to set up care centres in banks to attend to the credit needs of the MSMEs. All unresolved issues, he said, could be taken up with his ministry for early resolution. Rai said that the government was also setting up an MSME info call centre for providing hands-on service to entrepreneurs.
Dr Amit Mitra, Secretary General, FICCI, pointed out that the timely availability of finance remained a major limiting factor for the growth of the SME sector. To enable SMEs to access capital at lower rates, he suggested that efforts should be made to earmark priority sector lending for SMEs, and enhance cash-credit limits, overdraft facilities, and working capital support from the banks. Saurabh Srivastava, Chairman, Indian Venture Capital Association, stated that entrepreneurs required an easier policy framework, access to infrastructure, fewer taxes and access to finance, both equity and debt. He called on venture funds to look at investment in SMEs.
Dr Amit Mitra, Secretary General, FICCI, pointed out that the timely availability of finance remained a major limiting factor for the growth of the SME sector. To enable SMEs to access capital at lower rates, he suggested that efforts should be made to earmark priority sector lending for SMEs, and enhance cash-credit limits, overdraft facilities, and working capital support from the banks. Saurabh Srivastava, Chairman, Indian Venture Capital Association, stated that entrepreneurs required an easier policy framework, access to infrastructure, fewer taxes and access to finance, both equity and debt. He called on venture funds to look at investment in SMEs.
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