Coimbatore: Doing business with the government undertakings, SMEs still hesitate due to lower rates and higher penalties, a senior official of Neyveli Lignite Corporation said.
Speaking at the inaugural of a two-day National Vendor Development Programme and MSME Expo 2014 here, N Ilamparuthi, Executive Director, NLC, said vendors should change this attitude and should start contributing to Public Sector Undertakings such as Railways, Defence and power units.
The Union Government rolled out a a policy in which it was made necessary for government departments to procure a minimum of 20 per cent products from the Micro, Small and Medium Enterprises (MSME), he said.
Tamil Nadu firms were not supplying as much goods when compared to companies from Northern States, including Gujarat, to government companies, he pointed out.
S Sivagnanam, Additional Industrial Advisor, MSME, Delhi said the Union Minister for Heavy Industries, Anant Geete has sent a letter to the MSME ministry to bring out comprehensive schemes to enhance MSME in the country.