Amid the industry's demand to make no further delay in approving the MSME procurement policy, the MSME Secretary, Uday Kumar Verma on Monday said that he expects the policy to be implemented soon as it has already been submitted to the Union Cabinet recently.
"I am expecting it (MSME procurement policy) sooner ... what comes before the Cabinet is not in my hands but I really hope to have it very soon," Verma said in the sidelines of a CII event in New Delhi.
The MSME Secretary also said, "The issue of SC/ST has been resolved and there will be sub-reservation, i.e, about 20 percent of the total 20 percent (public procurement for MSMEs) should be for SC/ST categories."
"It means 4 percent reservation to SC/ST. And, if there is not enough SC/ST enterprises who can supply, then that would not actually be blocked but would pass on to the general category," Verma added.
The Ministry of MSME has already modified the draft policy, which now includes SC/ ST category as well for giving them sub-reservation.
It is said that initially, there will be lower procurement targets which will eventually be taken to 20% over a period of three years.
The MSME's share of estimated annual procurements, worth over Rs 1.7 lakh crore, is now a mere 5% (Rs 8,500 crore). The sector contributes about 45 percent of India's total manufactured output and close to 40 percent to the country's exports. It provides employment to about 60 million persons through 26 million enterprises and contributes 8 percent of India's GDP.
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