The Public Procurement Policy will come into effect from April 1, 2015, according to S.M. Jamkhandi, Director, MSME Development Institute.
Speaking at an interactive session organised by the Confederation of Indian Industry here on Wednesday, he said that as per the policy that was drawn three years ago, it was mandatory for the public sector units to procure 20 per cent of material from the MSME units.
It had compelled the PSUs to purchase 4 per cent of material from the units run by SC/ST entrepreneurs. The policy had become a law. The three-year cooling off period would end on March 31.
The PSUs would have to implement the policy after that.
Stating that it would be a big boost to MSME sector, Mr. Jamkhandi said the entrepreneurs should utilise the opportunity to produce materials required by them. The law was enacted to provide more opportunities for MSMEs.
While touching upon shortage of skilled labourers, he said that hundreds of MSMEs were facing severe shortage of skilled workers. To support the small and medium units, the MSME ministry had launched a job portal. It would make available the required manpower in their areas itself.
They could use msmejob.com to register their requirements.
On complains by entrepreneurs on availing loan from public sector banks, Mr. Jamkhandi said the MSME ministry with the support of Reserve Bank of India had made it compulsory for the banks to put up the loan rejection application form on their website in Karnataka.
They had to specify the reasons for rejection. It was to ensure transparency in lending loan for small and medium enterprises. He would try to create a similar arrangements in Tamil Nadu.
P. Kanakaraj, Chairman, CII Tiruchi zone, and G. Uma Shankar, Convenor, MSME panel spoke.