UP government nod to public procurement policy

With a view to giving a major boost to the MSME sector in the state, the Uttar Pradesh Cabinet has approved the public procurement policy and set up a toll free number for entrepreneurs to register complaints about such procurement.

It has also approved an electronics manufacturing policy under which three clusters will be set up to encourage manufacturing of electronics products, according to a post on the web site of the Federation of Indian Micro, Small and Medium Enterprises (FISME).

The Uttar Pradesh Cabinet headed by state Chief Minister Akhilesh Yadav made several announcements on Friday.

The UP cabinet has approved the public procurement policy, launched by the Central Government on March 23, 2012, under which all Central ministries/department/PSUs will procure a minimum of 20 per cent of their total annual purchases from micro and small enterprises (MSEs).

The state government said that e-procurement will be encouraged in the state, and details about the procurement have to be mandatorily given on the concerned department's website.

Further, the government said that out of 358 items produced by small and medium enterprises, handicraft items will be procured only from the SMEs.

Under the proposed policy, the government has proposed plans to encourage the SC/ST, women and the differently abled in the SME sector.

Further, to boost investment in electronics manufacturing, the UP Cabinet has approved the Electronic Manufacturing Policy 2014. UP is the fourth state in the country to institute such a policy.

The policy aims at establishment of Electronic Manufacturing Clusters (EMC) in the state under which three clusters, including one in the Yamuna Expressway Industrial Development Authority (YEIDA) area, will be set up to encourage manufacturing of electronics products. The clusters will be set up in 100 acres of land each.

The key features of the policy include 15 per cent capital subsidy, five per cent interest subsidy for seven years, 100 per cent exemption on stamp duty, reimbursement of costs incurred in domestic/international filing of patents, 100 per cent tax reimbursement on VAT/CST for 10 years, rebate of 25 per cent on prevailing sector rates on land purchase, and industrial promotion subsidy for existing units.

The policy will consider a special incentive package for units investing over Rs 200 crore in the sector. Under it the state government will provide a subsidy equivalent to 50 per cent of the grant provided by the Centre under the National Policy on Electronics, 2012 to boost development of infrastructure facilities for these EMCs in UP.

The policy will promote industries such as manufacturing of mobile devices, telecom products, consumer electronics, automotive electronics, industrial electronics, power electronics, IT systems and hardware.

Source: Knowledge and News Network