Vijayawada: Plea to procure goods & services from MSMEs

Vijayawada: Various government departments, corporations, public sector undertakings are not adhering to the mandatory guidelines stipulated for the procurement of goods and services from within the State, Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) said in a representation to the government.

AP Chambers president P Bhaskara Rao, executive vice-president L Raghu Ram Reddy, general secretary B Raja Sekhar and director P Koti Rao on Monday called on Secretary of Industries and Commerce N Yuvraj at the Secretariat at Velagapudi and submitted a representation to him on government procurements from MSME units in AP.

They stated, “As per the Public Procurement Policy of MSME Act, 2006, the Union government set an annual target of 25 per cent mandatory procurement from MSME Sector effective from April 1, 2015.” Out of 25 per cent, four per cent is reserved for SC/ST entrepreneurs and three per cent for women entrepreneurs. The policy was aimed at providing an assured market to MSMEs. The objective of the Policy is to promote and develop Micro and Small Enterprises by supporting them in marketing of products produced and services rendered by them.

“There are 358 items reserved for exclusive procurement from MSMEs. Most of these reserved items are manufactured by MSMEs in the State. As part of the restart package, the State government provided for preferential market access to Micro and Small Enterprises in all government procurements. The Chambers stated that unfortunately the mandatory guidelines are not adhered to and the public procurement has been mainly happening from other states and other countries without transparent procurement policies.

The Chambers suggested that the State government take proactive measures to procure its required materials and goods from the MSME units spread across AP. It stated that the procurement from MSMEs would not only provide much needed support to these local businesses but also stimulate regional economic growth.