VIJAYAWADA: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has urged the state government to take proactive measures and procure materials and goods from the state's MSME units.
Procurement from MSMEs to meet the governmental departments’ requirements would provide much-needed support to these units and simultaneously stimulate regional economic growth, it said.
A delegation of AP Chambers led by its president Bhaskara Rao and including executive vice president Raghuram Reddy, general secretary Raja Sekhar, and director Koti Rao called on the secretary to government (industries & commerce) N Yuvraj, at the state secretariat in Velagapudi on Monday.
They submitted a representation to him. It said, “As per the public procurement policy of MSMED Act, 2006, the Union Government set an annual target of 25 per cent mandatory procurement from the MSME sector effective from April 1, 2015. Various government departments, corporations, public sector undertakings etc in the state are, however, not adhering to these guidelines.”
“Out of the 25 per cent, 4 per cent is reserved for SC/ST entrepreneurs and 3 per cent for women entrepreneurs.”
Stating that the policy was aimed at providing an assured market to MSMEs, the Chambers delegation said that this would help promote and develop Micro and Small Enterprises.
Chambers president Bhaskara Rao said, “There are 358 items reserved for exclusive procurement from MSEs. Most of these are manufactured/produced by MSMEs in the state. As part of the Restart Package, the state government provided preferential market access to Micro and Small Enterprises in all government procurements. Unfortunately, the mandatory guidelines are not adhered to.”
“Public procurement has been mainly happening from other states and from abroad without transparent procurement policies.”
