FDI: Govt to make MSE sourcing mandatory

FDI: Govt to make MSE sourcing mandatory

MSME minister Virbhadra Singh said that the policy would be notified after March 6, once the state assembly poll results are out

Friday, February 17, 2012

BANGALORE, INDIA: Multi-brand retailers will have to source 30 per cent of their annual purchase from micro and small enterprises (MSEs) once the FDI in multi-brand retail comes into effect, said MSME minister Virbhadra Singh on Thursday.

"The Centre is planning to make mandatory for multi-brand retail to source 30 per cent of their purchases from MSEs," Singh told the press on the sidelines of an event here in the city.

The MSME minister further said that the policy would be notified after March 6, once the state assembly poll results are out.

The policy would be voluntary in nature for three years and made mandatory after that. It mandates 20 per cent reservation for MSEs in all procurement by government departments and PSUs. "This will give much needed support to MSEs in marketing their products," he said noting a four per cent earmarking for SCs and STs.

"PSUs are expected to buy goods worth Rs. 35,000 crore from the MSEs, of which a business of Rs. 7,000 crore would go to the SCs/STs," he said.

©CIOL Bureau