FCIK urges review of procurement norms to support J&K MSMEs
Srinagar, Feb 4: The Federation of Chambers of Industries Kashmir (FCIK) has urged Chief Minister Omar Abdullah to take up the issue of procurement norms with concerned Central Ministries, warning that large public investments in Jammu and Kashmir are failing to benefit local industry.
The Federation has sought relaxation in qualification and procurement conditions under Centrally Sponsored Schemes and projects executed through Central Public Sector Enterprises (CPSEs), saying the existing framework effectively sidelines local micro, small and medium enterprises (MSMEs) and contractors.
“Without timely intervention, public investment will continue to bypass local industry,” FCIK said, stressing that development projects must translate into local employment, capacity-building and economic empowerment rather than disproportionately benefitting outside firms.
The issue was flagged at the conclusion of a two-day CPSE-level Vendor Development Programme organised by the Ministry of MSME at the Sher-i-Kashmir International Conference Centre (SKICC). Representatives from CPSEs, including Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, NHPC Limited, National Small Industries Corporation, Government e-Marketplace, Food Corporation of India, Hindustan Petroleum Corporation Limited, Power Grid Corporation of India Limited, Central Public Works Department and National Highways Authority of India participated.
During the programme, CPSE officials outlined their procurement and execution procedures. While reiterating compliance with the Central Public Procurement Policy mandating 25 per cent sourcing from micro and small enterprises, officials said no distinction is made between local and non-local MSEs. They maintained that purchase or work preference for local enterprises could only be considered if enabled through special provisions approved by their respective Ministries in consultation with the Union Territory government.
FCIK expressed concern that projects worth thousands of crores of rupees are being implemented in the Union Territory through CPSEs and, in many cases, through UT-level PSUs bound by central procurement rules. High turnover requirements, bundled works, large-volume supply conditions and stringent experience criteria, it said, are effectively excluding local manufacturers and contractors from the bidding process.
“This situation is both astonishing and deeply concerning,” the Federation said, noting that projects intended to spur development in Jammu and Kashmir are largely being executed by outside agencies, leaving local enterprises idle or underutilised. Such an approach, it added, deprives the local economy of employment generation, skill development and industrial growth.
The Federation argued that even partial routing of these projects through local enterprises could significantly strengthen industrial capacity and create sustainable employment.
Citing a precedent, FCIK recalled that intervention by the erstwhile State Government with the Ministry of Railways had led to directions for the executing agency IRCON to extend purchase preference to local enterprises. “That engagement benefited hundreds of local units and demonstrated that proactive coordination with Central Ministries can deliver tangible results,” it said.
The concluding session of the programme was presided over by Director Industries and Commerce, Kashmir, Khalid Majid, who agreed to take up the issue with higher authorities and explore ways to ensure local enterprises benefit from ongoing projects. He also said the UT government’s revised Procurement Policy, currently under review, would aim to strengthen the participation of local enterprises in public procurement.
Earlier, Director Handicrafts and Handlooms Masarat-ul-Islam and Managing Director, KPDCL, Mehmood Ahmad Shah addressed participants, while Joint Director MSME Amit Kumar Tamaria delivered the keynote address, assuring full support of the Ministry to local enterprises. The welcome address was delivered by Assistant Director MSME Suhail Allaqaband.
A large number of industry representatives from across the Valley participated in the two-day programme under the banner of FCIK, led by Shahid Kamili. Participants raised queries during interactions with officials from Government e-Marketplace, flagging what they described as operational loopholes in the system.
