Order to buy from SSIs being flouted

Although the Ministry of Micro and Small Enterprises had declared that procurement of 358 items would be done by Central ministries,departments and public undertakings only from small scale units so as to give them a boost,a number of large and medium units are still playing spoilsport.

Written by Raakhi Jagga | Ludhiana | Published: April 4, 2012 12:40:21 am

Although the Ministry of Micro and Small Enterprises had declared that procurement of 358 items would be done by Central ministries,departments and public undertakings only from small scale units so as to give them a boost,a number of large and medium units are still playing spoilsport.

As per a complaint sent by the Federation of Punjab Small Industries Associations,the items — nuts & bolts,hand tools,water tanks,steel furniture,cotton hosiery,blankets,diesel engines,PCV pipes,cables,etc — are to be provided by small scale units to the above mentioned departments. The order was made in June 2010 as per the public procurement policy.

Badish Jindal,president of the Federation,said,“Many small units are not even aware while many others are not able to get a chance because the large players are again supplying the material.” Jindal has also written to the Virbhadra Singh,union minister for micro,small and medium enterprises.

He has demanded action against the departments that are not adhering to the Government’s instructions. Jindal added that even seminars need to be conducted at the district level to make people aware of this policy as well.

He said that small industry of Punjab has been affected a lot because many items placed in the public procurement policy are being manufactured in bulk in Punjab. As a rough estimate,the 358 items contribute business of more than Rs 50,000 crore. If done exclusively from small units,it can give a big facelift to manufacturers,feel Federation members.

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