MSME-DI and DPA organize seminar on Public Procurement Policy

In the context of government notification published on March 23, 2012 for its Public Procurement Policy for Micro and Small Enterprises (MSEs) under which central government ministries, departments and PSUs shall procure a minimum of 20 per cent of their annual value of goods or services from MSEs. The MSME-Development Institute has recently organised the State Level Vendor Development seminar with DPA to spread the message amongst print fraternity which comprises 65 percent of printers to micro and small units, 20 percent to medium and merely 15 percent to large units. Here is a report on the recently held seminar in New Delhi. The MSME-Development Institute under Ministry of MSME, Govt. of India in association with Delhi Printers’ Association (DPA) recently organized an awareness seminar ‘State Level Vendor Development seminar’ in New Delhi to spread the message of recently passed Act by the Government of India for making it mandatory to procure minimum of twenty percent of annual value of goods, services from micro, small and medium enterprises for ministries, departments and PSUs. This particular seminar on Public Procurement Policy was targeted to the audience coming from printers’ fraternity, members of DPA and various departments’ representatives including NCERT, NBT, CBSE, IGNOU, DBT, etc.

To promote the small scale entrepreneurs who are otherwise not able to compete the larger organizations specifically in price criteria, Government of India, considering the dire need to make it possible, has brought in a noble solution by making it mandatory to reserve at least twenty percent of annual purchase value for MSME segment. This will definitely go a long way in the interest of micro and small enterprises.

An interesting panel participation at the seminar was initiated by director MSME-DI, who in-fact elaborated the Act and its provisions in detail. The awareness so made was equally received by the printers’ fraternity and the senior procurement officials of all the organizations present on the dais. The policy has been made effective from April 1, 2012; however the deadline to implement it strictly has been kept as April 1, 2015 which was appreciated by the department, as they otherwise also need time to adopt the same.

Dr Veera Gupta, secretary, CBSE present as chief guest to the seminar, was happy to see one-to-one interactions for the first time where everyone participated openly and placed their view points. She said that the seminar has been very timely organized as the major policy matters are being discussed at all levels including issues on FDI in multi-brand retail segment. Director MSME, while talking to the participants, also assured the dignitaries from different departments that quality, price and delivery time schedule will be adhered to by the suppliers from that segment.

President of DPA Arun Berry was also very happy to see the response of this one-of-its-kind seminar organized in very cordial manner involving printers and print buyers, which will also open up new doors of co-operations. “The benefits of the Act will serve a great purpose making the country a beneficiary as majority of service providers belong to micro and small enterprises. The scheme so worked out is very timely and the Government deserves all appreciations,” stated Arun Berry, president, DPA. He requested the official of NCERT present at the seminar to reduce the amount of bank guarantee sought against supply of paper. “The establishment worth of micro units is only Rs 25 lakh and that of small units is Rs 5 crore. So it is very difficult for such units to submit bank guarantees of Rs 20 to 30 lakh,” he reasoned. Citing the example of CBSE which asks only for insurance worth 100 per cent of the cost of paper supplied, Berry suggested NCERT that it should also follow the CBSE norm. Berry further requested the NBT officials to allow micro and small printers to come forward for empanelment so that NBT can begin to follow the MSME ministry’s order.

The participants from buying organizations included Shiv Kumar chief production officer, NCERT; DC Joshi from Bureau of Text Books (BTB); SR Vinesh from NBT; AS Chhatwal from IGNOU, all elaborated their individual procurement policies as on date. They all were very open in going with the policy of Government in adopting the provisions under the new Act.