Govt departments asked to abide by norms on sourcing from MSEs

Government departments and PSUs here have been caught on the wrong foot for not conforming to the guidelines on procurement of goods from local micro and small enterprises (MSEs).

Despite the guidelines spelt out clearly in the MSME Development Policy, 2009, their non-compliance by the concerned departments has irked the chief secretary.

"It has come to my notice that some of the departments and PSUs are not following the instructions (on procurement from MSEs) strictly. You are requested to reiterate these instructions to all concerned for necessary action in accordance with the government's MSME Development Policy and also to facilitate inspection of tenders and related papers relating to major purchases during last 1-2 years by director, export promotion & marketing", state chief secretary G C Pati said in a letter to secretaries of all departments.

The onus is on the MSME (micro, small & medium enterprises) department and director, export promotion & marketing, to report specific instances of non-compliance for taking appropriate and necessary action for violation of instructions. The chief secretary has called for initiating disciplinary proceedings against officers responsible for such violations.

Vishal Dev, chairman and managing director, Odisha Industrial infrastructure Development Corporation (Idco) said, "Procurement from local MSEs is not happening to the desired level because of quality issues. The local units need to scale up on quality of goods to fit the requirement of the large sector industries."

According to the original MSME Development Policy, the state government will ensure that requirement of goods and services by government departments and agencies under its control are procured from the MSME units located within the state.

The list of goods and services reserved for exclusive purchase from the MSME units located within the state will be prepared from time to time keeping in view the production capacity of the local units and requirement of state government departments and agencies under its control.

This list would consist of items for which sufficient production capacity exists within the state to meet the entire demand of the government sector.

The policy states that local MSEs registered with the directorate of industries, Odisha Small Industries Corporation (OSIC) and National Small Industries Corporation (NSIC) would be exempted from payment of earnest money and would pay 25 per cent of the prescribed security deposit while participating in tenders of government departments and agencies under its control.