Daily Special Current Affairs Material for IAS (Pre) 2013 National Issues – Topic: “The Private Sector’s Turn To Deliver”

Chapter: National Issues

Topic: The Private Sector’s Turn To
Deliver

Q. What are the highlights of new Procurement Policy?

• The Central government has finally announced a policy
  reserving 20 per cent of its purchases for micro and small enterprises run
  by entrepreneurs belonging to the Scheduled Castes and the Scheduled Tribes.

• The new procurement policy will cover 358 items to be purchased
  by Central ministries, departments and public sector undertakings. The 20 per
  cent purchase norm will become mandatory after three years.

• The corporate sector has developed affirmative action policies
  on a voluntary basis and adopted a code of conduct; entrepreneurship development
  is one of the components of this policy. Associations of industries have
  recognised the role of market support for success in integrating marginalised
  communities in mainstream industry.

• CII, Assocham, and FICCI, whose membership runs into thousands
  of companies, are way behind in accepting the market support policy in purchases
  from SC and ST vendors.

• The government’s initiative on procurement, if accepted by the
  private sector on a wider scale, has the potential to make growth pro-poor and
  inclusive.

Q. What are the limitations of new Procurement Policy?

• The policy does have its limitations as procurement under the policy
  will cover only purchases made by Central ministries, departments and PSUs.
• Public enterprises account for only 5 per cent of the total enterprises
  in India. The remaining 95 per cent, private enterprises, are without any
  such obligation.

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