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2013-10-01

Kassia proposes implementation of purchase preference for SMEs

Karnataka Small Scale Industries Association (Kassia) has requested Chief Minister Siddaramaiah to implement 15 per cent purchase and price preference for SMEs.

Karnataka Small Scale Industries Association (Kassia) has requested Chief Minister Siddaramaiah to implement 15 per cent purchase and price preference for SMEs.

 

Members of Kassia met the Chief Minister recentlyand placed their demads against CM. They demanded that the small industries are to be given both purchase preference and 15 per cent price preference in order to be competitive when compared with large and medium enterprises.

 

Some of the corporations such as Karnataka State Road Transport Corporation (KSRTC) have adopted a policy where the SMEs were asked to match L-1 rates of large industry.

 

“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 Due to this ambiguity in price preference, this policy has been withdrawn and at present no SME is in a position to supply materials to any of the government undertakings,” said B.P. Shashidhar, president, Kassia.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 upto panchayat level,” said Padmanabha, secretary, Kassia.

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