Govt to set up taskforce to help MSEs with procurement rule

The MSME ministry is planning to set up a task force to help micro and small enterprises take advantage of the new procurement policy being framed by the government.

"We are thinking of setting up a task force on procurement to understand the actual capacity of MSEs, identify products required by various government departments and ways to help them take advantage of the new policy being framed," a senior ministry official said.

According to the procurement policy, which is awaiting the Cabinet approval, 20% of the annual purchases by various ministries and public sector enterprises will be sourced from MSEs.

The task force, the official said, will suggest steps to help the micro and small enterprises (MSEs) to improve their operational performance and step up production of goods with a view to meeting the demand of the state-run firms.

The government, the official said, would soon circulate a Cabinet Note on the procurement policy.

This policy is part of the recommendations by the Task Force set up by Prime Minister Manmohan Singh that went into the whole gamut of problems faced by the micro, small and medium enterprises (MSME) sector.

The sector contributes 40%to the total exports and 45% of the country's manufacturing output. There are 26 million units which employ 60 million employees in the country.