Center committed to welfare of MSMEs, PM to state Govts

Prime Minister, Dr. Manmohan Singh delivering the inaugural address at the Conference of State Ministers of Welfare and Social Justice, in New Delhi on June 17.

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Saurabh Gupta | 17 Jun, 2011
To bring to the attention of state governments, Prime Minister Dr. Manmohan Singh today said that his Government is planning to earmark percentage of procurement from Micro, Small and Medium Enterprises (MSMEs).

While addressing the Inaugural Session of the Conference of State Ministers of Welfare and Social Justice in the national capital on Friday, PM said, "The central government is planning to earmark a percentage of procurement from the Micro, Small and Medium Enterprises which are run by those who are disadvantaged."

The government is waiting for a final approval of new procurement policy for MSMEs, including 20 percent quota for SC/ST category, from the union cabinet. According to a senior central government official, the modified MSME procurement policy including 20 percent quota for SC/ST category has been reached to the cabinet for final stamp.

Under the modified procurement policy there should be a provision of aspirational 20 percent government procurement for MSMEs for first three years. And 20 percent of this 20 percent should be for SC/ ST categories.

The MSME procurement policy has been finalized by Prime Minister's Taskforce on MSMEs, proposes to make it compulsory for government departments and public sector units to source 20 percent of their procurement needs from small and micro units. A task force chaired by the Prime Minister's Principal Secretary, T K A Nair, had proposed a compulsory procurement policy for MSMEs to help them improve their bottom lines and broadly encourage micro and small businesses in the country.

Dr. Singh said that the UPA government is committed for the welfare of the young entrepreneurs and has taken a number of initiatives to increase affirmative action with regard to employment of our weaker sections.

He said, "Some of the results are encouraging. Several corporate houses have voluntarily adopted a code to ensure effective affirmative action. Ombudsmen have been appointed to ensure single point accountability. Nearly one lakh, twelve thousand youth have been trained under entrepreneurship development and other programmes. But here too, much more needs to be done."

"We are also working together to ensure an annual voluntary disclosure mechanism," he added.

Minister for Social Justice and Empowerment, Mukul Wasnik, also graced the event with his welcome speech.

After PM's speech, Minister of State for Social Justice and Empowerment, Napoleon, delivered the vote of thanks.