Association plans to approach Defence and BHEL too

The micro units in Coimbatore, which operate out of one or two room sheds here, are approaching the public sector units seeking priority to them in the raw material and component purchases.

President of Coimbatore and Tirupur District Micro and Cottage Entrepreneurs’ Association S. Ravikumar said that the railways is making some purchases from the small and micro enterprises. The association plans to approach the Defence and BHEL too for priority to the micro sector in the procurement.

The Union Government’s procurement policy says that from 2015 it is mandatory for the Central Government ministries, departments and public sector undertakings to have 20 per cent of the annual value of goods from micro and small enterprises. The small-scale industries will have better infrastructure compared to the micro enterprises.

Hence, they will be able to supply according to the requirements of the Government procuring agencies. The micro units should be allocated specific quantity. Most of the micro units now take up job works for small, medium or large-scale industries. If they get direct orders from the Government departments and public sector units, they will be able to improve their operations. The association will appeal to the Union Government to specify a quantity for micro units in the procurement policy, he said. R. Ramachandran, president of Coimbatore District Small Industries’ Association, said that the public sector units were yet to implement the procurement policy.

“We have given representations to the Government. Even when the units approach the departments or the government-run companies, they do not get priority now,” he said.

The micro, small and medium-scale enterprises (MSMEs) require the support of the Government and direct orders (apart from the job work they do for bigger firms) to improve their operations.

The slowdown in orders from private companies during the last few weeks has hit the MSMEs, he said.


Budget disappoints micro unitsMarch 2, 2013

More In: Coimbatore