Ensure quality, will raise tender cap: PM to MSMEs – Times of India
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NEW DELHI: Prime Minister Narendra Modi on Thursday indicated that the government was willing to increase the threshold or “reservation” for micro, small and medium enterprises (MSMEs) for participating in government contracts, without tender, from the current level of Rs 200 crore to Rs 500 crore, if businesses ensured that they supplied quality goods and services.
Addressing the ‘Udyami Bharat‘ programme, Modi pointed to a government decision to do away with the requirement for global tenders for contracts up to Rs 200 crore. “This means, in a way, there is a reservation for you… Don’t compromise on quality. You demonstrate this so that the government is forced to increase the level to Rs 500 crore. We are willing to go up to Rs 500 crore. We are moving towards a healthy competition,” he said, while urging small businesses to keep an eye on global markets, without worrying about the scale of their operations.
The PM said that it is important for the MSME sector to be strong so that Indian exports grow continuously and domestically produced products enter new markets.
The PM said that MSME is crucial from the point of macroeconomy and creating employment and had been shackled by previous regimes. Through a series of schemes, launched on Thursday, as well as policy measures, such as ending the differentiation between goods and services and allowing sale on the Government e-Marketplace (GeM), the online platform for government procurement, the Centre was seeking to empower MSMEs, he said.
Citing the PMO‘s experience in buying a flask from a woman seller in Tamil Nadu through the GeM portal, he urged industry bodies to register on it as it opened the doors to participate in government orders and tenders. He also said the government policy and its intent make all the difference and pointed to a surge in khadi sales and its transformation from a garment worn by politicians into a global brand.
Addressing the ‘Udyami Bharat‘ programme, Modi pointed to a government decision to do away with the requirement for global tenders for contracts up to Rs 200 crore. “This means, in a way, there is a reservation for you… Don’t compromise on quality. You demonstrate this so that the government is forced to increase the level to Rs 500 crore. We are willing to go up to Rs 500 crore. We are moving towards a healthy competition,” he said, while urging small businesses to keep an eye on global markets, without worrying about the scale of their operations.
The PM said that it is important for the MSME sector to be strong so that Indian exports grow continuously and domestically produced products enter new markets.
The PM said that MSME is crucial from the point of macroeconomy and creating employment and had been shackled by previous regimes. Through a series of schemes, launched on Thursday, as well as policy measures, such as ending the differentiation between goods and services and allowing sale on the Government e-Marketplace (GeM), the online platform for government procurement, the Centre was seeking to empower MSMEs, he said.
Citing the PMO‘s experience in buying a flask from a woman seller in Tamil Nadu through the GeM portal, he urged industry bodies to register on it as it opened the doors to participate in government orders and tenders. He also said the government policy and its intent make all the difference and pointed to a surge in khadi sales and its transformation from a garment worn by politicians into a global brand.
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