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Ramesh Sharma

Mr Dinesh Rai (right), Secretary, Ministry of Micro, Small and Medium Enterprises, with Dr Amit Mitra, Secretary-General, FICCI, at the ‘Global SMEs Summit’ in the Capital on Tuesday. —

Our Bureau

New Delhi, July 28 The Government is framing a new purchase policy to provide market support to micro, small and medium enterprises (MSME). Mr Dinesh Rai, Secretary, Ministry of MSME, made the announcement at a summit on MSMEs organised by the Federation of Indian Chambers of Commerce and Industry.

Mr Rai added the Government had studied the procurement policy prevalent in the US and would come out with a similar policy for MSMEs. This would entail fixing a certain percentage that Government departments and ministries would have to buy from MSMEs based on the total amount of purchases made by them annually.

He said that in order to equip MSMEs to face the competition from cheap imports, the Government had launched the National Manufacturing Competitiveness Programme. (NMCP). The programme envisages investment of Rs 1,000 crore during the Eleventh Plan period for enhancing the entire value chain of the MSME sector. Six of the 10 components of the NMCP were already operational. Regarding the problems faced by SMEs in acquiring finance from banks, Mr Rai said that Rs 7,000 crore was given to the sector through stimulus packages at rates less than 10 per cent. He added that a credit rating system is also being promoted, which would allow certain enterprises to get better deals on financing.

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