AP govt mandates local sourcing from MSMEs
This initiative aims to support local MSMEs and help them overcome economic challenges
Vijayawada: In a path-breaking initiative, Andhra Pradesh Government has issued detailed instructions to the Treasury authorities not to admit bills on orders accepted from MSMEs outside the State in violation of a recent GO to procure materials only from local MSME units.
Permission will be given only in exceptional cases where the local MSMEs do not manufacture the specific products required by any government departments, corporations or quasi-government bodies.
In a gazette notification vide GO Ms. No. 27 dated March 1, 2024, issued by senior IAS officer N Yuvaraj, the Department of Industry and Commerce spelt out the guidelines to encourage MSMEs by ensuring purchase of their products. Though there were GOs issued in the past in this regard, this is for the first comprehensive guidelines are issued for better enforcement, said AK Balaji, owner of Lalita Metals and member of MSME committee of Confederation of Indian Industry (CII).
He told Bizz Buzz that the GO, if enforced in true letter and spirit will certainly help the MSMEs to overcome the difficult time now they are facing in selling their materials.
According to the GO, the Finance Department informed on the recommendations of the High Level Technical Committee, which wanted that some works can be entrusted to labour contract cooperative societies to help small scale industries. As a measure to encourage the SSI units, the government has given certain incentives to them. They are to be observed in entrustment of works and concluding the agreement. All agreement concluding authorities should ensure GO Ms. No. 51 dated June 1, 2010 of the Industries Department are complied with.
The government issued specific directions to develop user credentials in the proposed AP MSME One portal to have a user interface. The latest GO mentioned that the government is serious about certain departments placing orders to MSMEs based outside AP despite availability of those products locally. The GO issued instructions so that the Commissioner, Industries and CEO, AP MSME Development Corporation will make available all relevant details in the portal.
Stakeholders’ consultation should be held to specify that certain materials are not available within the State. The corporation has been mandated to prepare a dynamic database by leveraging the procedures of the GeM portal of the Government of India.
