Kassia urges State to implement purchase preference for SMEs | SupportBiz


Kassia urges State to implement purchase preference for SMEs

The Karnataka Small Scale Industries Association (Kassia) has requested the State government to bring in 15 per cent purchase and price preference (procurement policy) for small and medium enterprises (SMEs) to assist them in competing with larger entities, reports Business Line.

Kassia has also asked the State to implement Central Government’s Purchase and Price Preference Policy for Micro & Small Enterprises.

A team of Kassia office-bearers has met Chief Minister Siddaramaiah recently and urged for both purchase preference and 15 per cent price preference, as per the industrial policy, for the State SMEs.

Kassia pointed out that, certain associations like Karnataka State Road Transport Corporation (KSRTC), are asking the SMEs to match L-1 rates of large industries, which has created ambiguity in pricing.

“This led to some corporations paying 15 per cent higher price to the SME supplier. Due to this ambiguity in price preference, this policy has been withdrawn and at present no SME is in a position to supply materials to any of the government undertakings,” said B.P. Shashidhar, president, Kassia.

“Therefore, we have requested the Chief Minister to restore the 15 per cent price and purchase preference and prescribe a procedure as in the case of KSRTC, where if the SME supplier is ready to match L-1 price of large manufacturer, he should be given preference,” he added.

“The government has to formulate a procurement policy which will be applicable to all departments, autonomous bodies and local bodies up to panchayat level,” said Padmanabha, secretary, Kassia. He also emphasized that the MSEs which are registered with NSIC, receive more benefit from the Centre’s policy.

Kassia has also demanded price preference up to 15 per cent over the lowest quotation of large-scale units, and that 358 items be reserved for exclusive purchase from the SME sector.