Government relaxes norms under public procurement for start-up MSMEs

The relaxation has been made to create conducive environment for start-ups

March 12, 2016 12:15 am | Updated 12:15 am IST - NEW DELHI:

The Union government on Friday relaxed procurement norms related to experience and turnover for micro, small and medium start-ups with a view to enabling these ventures to be part of its public procurement.

From April 2015, all PSUs, central government ministries and departments have been directed to procure at least 20 per cent of products and services required by them from micro and small enterprises.

“If the MSMEs can deliver the goods and services as per prescribed technical and quality specifications, the norms on prior experience and prior turnover will be relaxed for them,” according to a MSME Ministry release.

The move will enable start-up MSMEs to be a part of the mandatory 20 per cent public procurement, it said.

“The relaxation has been made to create conducive environment for the start-ups in India, which is high on the agenda of the government,” the MSME Ministry said.

A review of the mandatory procurement policy by MSME Minister Kalraj Mishra last month had found that less than half of the PSUs were complying with the mandatory 20 per cent procurement of products and services from micro and small enterprises.

Study missions Besides, to ensure better implementation of quality management standards/quality technology tools scheme under the National Manufacturing Competitiveness Programme, MSME Ministry has decided to conduct two international study missions in collaboration with CII and Consultancy Development Corporation in this fiscal ending March as well as in next financial year.

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