Micro & Small Enterprises (MSEs) functional in Jharkhand are up in arms over the State Government’s apathy. Despite issuing a notification in this regard, most of the Departments have shown laxity in procuring mandatory 20 per cent of items manufactured in small and medium units from within the State. The new procurement policy, introduced in Jharkhand Industrial Policy—2012, is meant to safeguard the interest of local micro and small scale manufacturers by supplying array of necessary items to Government departments, State-owned PSUs, Boards and Corporations, trusts, municipalities, co-operative bodies and institutions aided by the Government.
“They are doing nothing in this direction though the policy is in place. Ideally, secretaries of all the Departments should have issued an order to make mandatory purchase at least 20 per cent of their total budget meant for annual procurements. The practice has not started yet,” said Sharad Poddar of Jharkhand Small Industries Association. Sources in the Industry Department say that despite getting the notification issued there is little awareness among the lower level officials about the policy. “They also show reluctance due to some vested interest and go for purchases made from outside,” said one.
Fatigued, the Association has decided to knock the door of the Chief Secretary next week and also mulling to resort to the RTI to get the actual figures related to implementations done so far. “We have met Secretary AP Singh earlier as he was the Industry Secretary when the policy formulation was in process. In a couple of days, we would be meeting the CS and request him to issue a centralised circular addressed to all departmental heads. Then we would file RTIs seeking details of procurements made so that pressure is build up,” added Poddar.
Also, there is need to mention about the clause in the tender document itself which is not being done so far. At the time of inviting tenders, Departments do not mandatorily ask for proof ascertaining the entrepreneur is based locally. In tender, participating local MSEs quoting price within price band of l1+15 per cent shall also be allowed to supply a portion of requirement by bringing down their price to l1 price in a situation where l1 price is from someone other than it. Proactive approach would have promoted more number of enterprises to come and fill the gap.
When approached, Industry Department sounded complacent on its part. “I don’t think there is any problem on the part of the policy implementation. The notification had been issued six months back. The MSEs have to participate in the tendering process to get the orders but I do not have figures about their participation thus far,” said Industry Secretary Himani Pandey. The official at the same time also added that the mandatory provisions of the policy provides cushion up to April 2016 to make those fully implemented. “That is also in the respect of not only goods but services as well,” the Secretary pointed out. Minimum of 20 per cent of product and 15 per cent of services have been made mandatory under the policy.
Seen in the lights of ‘Make in Jharkhand’ call Chief Minister Raghubar Das has given, industry persons are of the view that the provision can be proved as a panacea for ailing small industries in the State and promote new investors to fill the gap existing in producing goods. Jharkhand procurement policy lists 33 products to be purchased coming from small industries. Considering ample scope available in the Departments such as education or welfare where supply of school dresses, stationary, paper or tricycles etc can be done through products manufactured by MSEs.