Govt may Reject Plan on Mandatory MSE Purchases

In a setback to micro and small enterprises (MSEs), the administrative ministry has proposed to do away with the plan to make it mandatory for PSUs and the government departments to procure 20% of their total requirements from these units. Significantly, the new proposal of the Ministry of Micro, Small and Medium Enterprises sidesteps the recommendations of the task force headed by T K A Nair, principal secretary to the Prime Minister. The MSME Ministry has sent a revised note to the committee of secretaries to dilute its earlier proposal.

Economic Times, New Delhi, 26-10-10.