GCCI urges govt to extend scheme for MSMEs by 3 yrs

Panaji: Goa Chamber of Commerce and Industry (GCCI) has urged the state government to continue with the preferential purchase incentive scheme introduced in 2008 for micro and small industries for an additional three years.
GCCI said that the scheme will help small businesses, which are struggling in the aftermath of the pandemic, to grow and participate in government contracts.
The Preferential Purchase Incentive Scheme lapsed in March 2021, but GCCI wants industries minister Mauvin Godinho to extend the scheme so that local units can benefit.
The scheme gave micro and small enterprises special treatment in government contracts, allowing smaller firms to match to lowest tender prices quoted by larger companies while meeting quality standards stipulated by the state government.
“MSME sector is considered the backbone of the Indian economy that has contributed substantially to the socio-economic development of the nation. It generates employment opportunities and works in the development of backward and rural areas,” said director general of GCCI Sanjay Amonkar.
Amonkar said that the scheme benefitted Goa’s smaller entrepreneurs, but since it expired in March 2021, the scheme has not been renewed.
“Stakeholders had represented that they are losing the MSME exemptions for waiver of security deposits, while payments are getting delayed,” said Amonkar.
He said that GCCI has requested the government to extend the scheme for a further period of three years from April 2021 so that the benefits lost during the intervening period be compensated to the best extent possible.
MSMEs, said Amonkar, are an important revenue sector for Goa and the scheme was a boon for micro and small industries. The scheme said that payments to micro and small companies should be prioritised with no security deposit being demanded.