Revise public procurement policy to save MSMEs in J&K: FCIK to Govt

Srinagar, Jan 9: Federation of Chambers of Industries Kashmir (FCIK)  has urged the government to launch a revised Public Procurement Policy at the earliest to save thousands of MSMEs from extinction.

In a statement, FCIK has conveyed that the constant changes in the Public Procurement Policy and other market dynamics have had a profound impact on the functioning and competitiveness of the MSMEs resulting in a large number of industrial units landing in stress or closure.

FCIK has recently submitted a comprehensive memorandum to the Chief Secretary with strong advocacy for the revival of marketing support extended by the government which was crucial for the very survival of units which relied on the shares from public procurements.

FCIK regretted that while implementing the national policy of procurement through the GeM portal, the authorities failed to assess and analyse the impact of the changed policy on local industry which operated in a difficult and landlocked place.

In their memorandum and subsequent notes submitted to the government, the FCIK has underscored the dire need for building the J&K Marketing Assistance Network through physical and electronic means by building and coordinating the efforts and aspirations of the government and stakeholders.

While advocating for the revival and strengthening of J&K Small Scale Industries Development Corporation Limited (SICOP) as an Apex organisation for coordination of marketing support programmes in the Union Territory for building MSMEs’ competencies and marketing competitiveness, the FCIK has suggested for appropriate and foolproof system in the corporation with more responsibility and accountability.

Taking a clue from 358 industrial goods reserved by GOI for procurement exclusively from Micro and Small Enterprises, the FCIK has suggested that the UT government needed to frame its list of items needed under public procurement and manufactured by local enterprises.

“The list of 23 items identified earlier and reserved for procurement through SICOP be included in the fresh list also”, suggests FCIK further.

FCIK has also demanded for segregation of industrial goods from works contracts, Turn-key projects and composite intent, for exclusive procurement from MSMEs and in this regard had suggested for revival of departmental stores for procurement and supply of certified quality industrial goods to the contractors.“Not with standing the notification issued by the Government of Jammu and Kashmir for reservation of 25% of industrial goods required under Public Procurement policy for exclusive procurement from MSMEs, the orders were not followed in letter and spirit”, regretted FCIK.

The FCIK has suggested for determination of reasonable and competitive rates and mechanisms for the distribution of orders by SICOP. In this regard, FCIK has urged for the formation of consortia of MSMEs in the same line of activity and push competition amoung these.

“While the lowest tenderer could be given a share up to 20% from a particular order, the rest of it could be distributed amoung consortia members according to their manufacturing capacities,” suggests FCIK.

The FCIK has also underscored the need for other activities relating to marketing to be taken up by SICOP for the growth and up-gradation of MSMEs in J&K.