PSU purchase policy for small units in two months news
03 March 2010

The government will make it mandatory for public sector units to make at least 20 per cent of their total purchases from micro and small enterprises (MSEs) and will come out with a draft policy in the next two months.

"We expect the policy to be out within in two months time," Dinesh Rai, secretary in the ministry of micro, small and medium enterprises (MSME), said on the sidelines of an Assocham function in New Delhi today.

Rai said his ministry would circulate a cabinet note on the proposed policy to different ministries in the next couple of days.

Under the proposed policy, all public sector undertakings, including the Railways and defence undertakings, would have to make 20 per cent of their total procurements in three years from the MSEs.

The government has, meanwhile, constituted an expert group to make suitable recommendations on the structure and mandate of an independent body at the national level for the promotion and development of micro, small and medium enterprises (MSMEs).

The group, headed by Arun Maira, member (industry) of the Planning Commission, will submit its recommendations within three months.





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PSU purchase policy for small units in two months