No global tender for government procurement of up to Rs 200 crore
In a bid to promote domestic manufacturing in micro, small and medium enterprises, the Centre has decided that no global tender will be floated by the government or its agencies for procurement of goods and services if the value is less than Rs 200 crore. However, its impact on the SME sector will be assessed after detailed guidelines are released.
“Unless the finer details of the announcement are out, it is very difficult to analyse its impact. Because, there could be multiple items in one tender to increase the value above Rs 200 crore to fit the criteria for a global tender,” said Anil Bhardwaj, secretary general of Federation of Indian Micro and Small & Medium Enterprises. Currently there is no financial limit fixed to float a global tender.
Finance minister Nirmala Sitharaman on Wednesday announced: “Indian MSMEs and other companies have often faced unfair competition from foreign countries. Therefore global tenders will be disallowed in government procurement up to Rs 200 crore. The necessary amendments of General Financial Rules will also be done.”
Watch video: Modi’s Rs 20 lakh cr package: FM Sitharaman’s boost for MSMEs, EPF relief impressive
This will be a step towards self-reliant India and will also support the ‘Make in India’ initiative, she said, but did not explain how it would benefit the MSMEs in particular. “Unless there is more than 25% reservation for SMEs in this process, it will not be helping the sector,” said Chandrakant Salunkhe, president of Mumbai-based SME Chamber of India.
The government has reserved 25% for the MSME sector in all its purchases, including through the Government e-Marketplace portal.