Share of MSME in public procurement should be increased: NCP

Union Finance Minister Nirmala Sitharaman should increase the share of MSME under the public procurement policy from the current 25 per cent to 50 per cent to expand their capabilities, the NCP said on Wednesday. Sitharaman announced the first set of components of the Rs 20 lakh crore special economic package declared by Prime Minister Narendra Modi earilier on Wednesday.

"The FM today changed the definitions of MSME (Micro, Small and Medium Enterprises) by revising the capital inflow and turnover cap. "She should increase the share of MSMEs under the public procurement policy from the current 25 per cent to 50 per cent," said NCP spokesperson Mahesh Tapase.

"This will greatly help MSMEs to expand their capabilities and take benefit of the corpus fund announced by the FM," he added. The NCP spokesperson also demanded that the quota for women entrepreneurs and those from weaker sections be increased as per the norms.

Sitharaman announced Rs 3 lakh crore collateral free automatic loan for businesses, including MSME. The Finance Minister also said that a fund of funds for MSME was being created, which will infuse Rs 50,000 crore equity in MSME with growth potential.