Excelsior Correspondent
JAMMU, Feb 4: The Federation of Chambers of Industries Kashmir (FCIK) has urged Chief Minister Omar Abdullah to take up the issue of limited participation of local MSMEs in Centrally Sponsored Schemes and projects executed by Central Public Sector Enterprises (CPSEs) in Jammu and Kashmir.
FCIK said strict procurement and qualification norms under central projects are resulting in local manufacturers and contractors being excluded from major works, despite heavy public investment in the Union Territory.
It appealed for relaxation of norms so that development projects generate local employment, strengthen industrial capacity and support economic growth within Jammu and Kashmir.
The demand was raised at the conclusion of a two-day CPSE-level Vendor Development Programme organised by the Ministry of MSME at SKICC, Srinagar.
The programme was attended by representatives of several CPSEs and agencies, including IOCL, BPCL, NHPC, NSIC, GeM, FCI, HPCL, Power Grid Corporation, CPWD and NHAI.
During the programme, CPSE officials explained their procurement procedures and stated that while they follow the Central Public Procurement Policy mandating 25 per cent procurement from Micro and Small Enterprises, no preference is given to local units.
They said any relaxation or special provision for local enterprises can only be implemented with approval from their respective ministries in consultation with the UT Government.
FCIK expressed concern that projects worth thousands of crores are being executed by outside agencies due to high turnover requirements, bundled works and stringent experience criteria, leaving local units unable to compete.
The Federation said even partial involvement of local enterprises could significantly boost employment and industrial growth.
Citing a past example, FCIK said intervention by the then State Government had led the Ministry of Railways to allow purchase preference for local units in IRCON projects, benefiting hundreds of enterprises.
The concluding session was presided over by Director Industries and Commerce, Kashmir, Khalid Majid, who assured that the matter would be taken up with higher authorities.
He also said the UT Government’s revised procurement policy, currently under review, would focus on strengthening local enterprises.
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