 "MSEs to have level playing field in open tenders")
In a bid to provide level playing field to the state-based micro and small enterprises (MSEs), the state government is likely to exclude VAT (value added tax) payable in state by MSEs participating in open tenders while evaluating the comparative price statements for finalisation of the tenders.
This incentive would be incorporated in the new MSME procurement policy soon.
"For open tenders, the comparison will be made on the basic price and VAT payable in state will be excluded while finalizing the tenders since the VAT amount accrues back as revenue to the state. It will be of immense help to the local units," said Panchanan Dash, secretary, MSME department, on the sidelines of Business Standard Smart Business event organised in association with Odisha Young Entrepreneurs Association, here.
With price comparison to be made only on the basic price for finalising the open tenders on the cards, it will fulfil the long standing demand of industry bodies of the state for a level playing field and will open up marketing avenues for local players battling for exporting the products.
The MSME procurement policy is likely to be unveiled by chief minister Naveen Patnaik during the Entrepreneurship Week to be held in March this year.
The policy, among others, will also mandate the state government departments and state public sector undertakings (PSUs) to purchase 20 per cent of their requirements from MSEs in Oidsha which is likely to give a boost to the sector. In addition, the MSME department is also in talks with e-commerce players like Amazon, Flipkart for linking with the department website for marketing the products of the local MSME units.
To address the infrastructural needs of the MSMEs in Odisha, the department is contemplating to provide plug and play facilities for MSME units at 45 panchayat industry clusters, after the Odisha Small Industries Corporation Ltd (OSIC) is handed over the responsibility of development of infrastructure for MSME units.
This incentive would be incorporated in the new MSME procurement policy soon.
"For open tenders, the comparison will be made on the basic price and VAT payable in state will be excluded while finalizing the tenders since the VAT amount accrues back as revenue to the state. It will be of immense help to the local units," said Panchanan Dash, secretary, MSME department, on the sidelines of Business Standard Smart Business event organised in association with Odisha Young Entrepreneurs Association, here.
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This step will open up opportunities for the local units as out of the state units are bagging orders by quoting CST (central sales tax) rates which is lower than VAT rate, he added. The purchase of goods from out of the state units by the government departments also erodes the state's consumption base. The local players are losing out opportunities to outside units.
With price comparison to be made only on the basic price for finalising the open tenders on the cards, it will fulfil the long standing demand of industry bodies of the state for a level playing field and will open up marketing avenues for local players battling for exporting the products.
The MSME procurement policy is likely to be unveiled by chief minister Naveen Patnaik during the Entrepreneurship Week to be held in March this year.
The policy, among others, will also mandate the state government departments and state public sector undertakings (PSUs) to purchase 20 per cent of their requirements from MSEs in Oidsha which is likely to give a boost to the sector. In addition, the MSME department is also in talks with e-commerce players like Amazon, Flipkart for linking with the department website for marketing the products of the local MSME units.
To address the infrastructural needs of the MSMEs in Odisha, the department is contemplating to provide plug and play facilities for MSME units at 45 panchayat industry clusters, after the Odisha Small Industries Corporation Ltd (OSIC) is handed over the responsibility of development of infrastructure for MSME units.