Minister of State in the MSME Ministry Shobha Karandlaje on Friday said a memorandum will be submitted to Prime Minister Narendra Modi for public sector units to prioritise the purchase of goods from micro, small and medium enterprises (MSMEs). The MoS was speaking at a conclave on MSMEs organised by the Federation of Karnataka Chambers of Commerce & Industry (FKCCI) in Bengaluru.
According to a PTI report, revealing that large PSUs are importing many raw materials from other countries, Karandlaje said her ministry will appeal to the Prime Minister to direct these PSUs to prioritise purchasing raw materials from MSMEs.
“A memorandum to that effect will be submitted to Prime Minister Narendra Modi,” the MoS said.
Importantly, central PSUs are mandated to purchase at least 25 per cent of their total procurement value from micro and small enterprises (MSEs) in a financial year, of which 4 per cent is to be procured from MSEs owned by SC/ST entrepreneurs and 3 per cent from MSEs owned by women entrepreneurs.
In FY24, the procurement value from MSEs had hit a new high. According to the data available on the MSME Ministry’s public procurement monitoring portal MSME Sambandh, central PSUs had procured goods worth Rs 75,253 crore from MSEs in FY24, growing by 16.2 per cent from Rs 64,721 worth of procurement made in FY23, FE Aspire had reported in May this year.
The share of purchase from MSEs was 35.6 per cent in FY24 benefitting 2.18 lakh enterprises in comparison to 37.1 per cent in FY23 involving 2.36 lakh enterprises.
Karandlaje further noted that about 5 lakh applications are received annually to start new MSMEs, however, the government is currently able to offer subsidies to only 90,000 applicants. Towards this, the MoS said the MSME Ministry has submitted a proposal to the finance minister to enhance this subsidy component.