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LATEST NEWS UPDATES | Govt's plan for PSUs to procure from Dalit SMEs fails to take off -P Vaidyanathan Iyer

Govt's plan for PSUs to procure from Dalit SMEs fails to take off -P Vaidyanathan Iyer

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published Published on Jul 23, 2018   modified Modified on Jul 23, 2018
-The Indian Express

In 2017-18, Central PSUs bought Rs 543.86 crore worth goods and services from SC/ST enterprises, accounting for just 0.46% of their total procurement of Rs 1,16,837.27 crore.

New Delhi: The government’s ambitious plan to get Central PSUs to make 4% of their procurement from Dalit enterprises has not made much headway over the last six years.

In 2017-18, Central PSUs bought Rs 543.86 crore worth goods and services from SC/ST enterprises, accounting for just 0.46% of their total procurement of Rs 1,16,837.27 crore. Five years ago, in 2012-13, SC/ST enterprises sold goods and services valued Rs 419.93 crore, or 0.5% of the total procurement of Rs 85,155.18 crore by Central PSUs then.

The ‘Public Procurement Order for Micro and Small Enterprises Order, 2012’, issued by the UPA-II government on March 23, 2012, required Central PSUs to procure 20% of their annual value of goods produced and services rendered from MSMEs. A sub-target of 4% (20% of 20%) was earmarked for procurement from MSMEs owned by SC/ST entrepreneurs. The procurement goal of 20% from MSMEs was made mandatory from April 1, 2015. Those not meeting this were required to provide reasons to a review committee set up by the ministry.

Information obtained from the Office of the Development Commissioner, Micro Small and Medium Enterprises, under the Right To Information Act and from the Ministry of MSME website shows that Central PSUs’ purchase of products and services from MSMEs and from SC/ST MSMEs dipped sharply in the first year (2014-15) of the NDA government, and rose in the subsequent years. While MSMEs accounted for almost 23% of the total procurement by Central PSUs in 2017-18, the share of SC/ST MSMEs was less than even 0.5%.

“The government did increase transparency by asking Central PSUs to not only make public their annual procurement targets, but also post the list of all goods purchased from and services rendered by MSMEs and SC/ST enterprises on separate websites,” a government official told The Indian Express.

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The Indian Express, 23 July, 2018, https://indianexpress.com/article/india/govts-plan-for-psus-to-procure-from-dalit-smes-fails-to-take-off-5270498/


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