SRINAGAR: The 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 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 recently submitted a comprehensive memorandum to the Chief Secretary with strong advocacy for the revival of marketing support extended by the government, crucial for the very survival of units relying on shares from public procurements.
FCIK regretted that while implementing the national policy of procurement through the GeM portal, the authorities failed to assess and analyze the impact of the changed policy on local industry operating in a difficult and landlocked place.
In their memorandum and subsequent notes submitted to the government, FCIK has underscored the dire need for building the J&K Marketing Assistance Network through physical and electronic means by 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 organization for coordination of marketing support programmes in the Union Territory for building MSMEs’ competencies and marketing competitiveness, FCIK has suggested an appropriate and foolproof system in the corporation with more responsibility and accountability.
Taking a cue from 358 industrial goods reserved by GOI for procurement exclusively from Micro and Small Enterprises, FCIK suggested that the UT government needed to frame its own 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 the segregation of industrial goods from works contracts, Turn-key projects, and composite intent, for exclusive procurement from MSMEs and suggested the revival of departmental stores for procurement and supply of certified quality industrial goods to the contractors.
“Notwithstanding the notification issued by the Government of Jammu and Kashmir for the 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.
FCIK suggested the determination of reasonable and competitive rates and a mechanism for the distribution of orders by SICOP. In this regard, FCIK has urged the formation of consortia of MSMEs in the same line of activity and push competition among these.
“While the lowest tenderer could be given a share up to 20% from a particular order, the rest of it could be distributed among consortia members according to their manufacturing capacities,” suggests FCIK.
FCIK has also underscored the need for other activities relating to marketing to be taken up by SICOP for the growth and upgradation of MSMEs in J&K.
