The Defence sector is most likely to be exempted from a proposed policy for compulsory government procurement from micro and small units, a top official said today.
"There are certain issues raised by the Defence about quality and timely supply. We have almost agreed to exempt the Defence sector from the proposed procurement policy," Secretary in the Ministry of Micro, Small and Medium Enterprises (MSME) Dinesh Rai said here.
Rai was talking to reporters on the sidelines of a function organised by the Federation of Indian Micro And Small and Medium Enterprises (FISME).
While some other ministries also raised similar doubts over the ability of small and micro units to ensure timely supply and quality of goods, efforts were on by the MSME Ministry to evolve a consensus on the issue.
"We are in touch with all the ministries concerned and are trying to convince them," he said.
Under the proposed scheme, it would be mandatory for government departments and public sector units to buy 20 per cent of their total requirement from these units.
Doubts have been raised by several ministries and large public sector units over the ability and technical expertise of small and micro units in meeting global standards.
There are 2.6 crore MSME units in the country, of which 1.86 crore are in the services space. The sector contributes 8 per cent to the GDP, 45 per cent to manufactured output and 40 per cent to exports.
