Procurement by public sector undertakings (PSUs) and government departments from MSMEs is "dismal" and should be increased, Union Minister Kalraj Mishra has said.
"The government has made mandatory for the PSUs and government units that they should make at least 20 per cent of their purchases from micro, small and medium enterprises (MSMEs) only," Mishra said after inaugurating the three-day VenDex-2016 and MSME Manthan-2016 in Thane, Maharashtra.
According to the MSME Minister, it has been observed that not all PSUs and government departments are honouring this directive, which is a serious issue. "They should make every effort to increase their purchases from MSMEs," he added.
Mishra further said that he was aware about the problems faced by small and micro industries and the government has initiated several steps for them, one of which is the directive given to PSUs and government departments.
The BJP leader also asked industrialists from here to go for development of industries in clusters and assured them of Centre's support. He said he had a discussion with Maharashtra Chief Minister Devendra Fadnavis on ways to help industries in the state. Thane MP Rajan Vichare was also present on the occasion.