According to the Public Procurement Policy for Micro & Small Enterprises (MSEs), which has been declared in April 2012, each department underneath the Central ministries or Public Sector Undertakings (PSUs) will ought to source at least 20 in step with cent of their total annual procurement via Micro and Small Enterprises (MSEs) handiest. A coverage introduced by the Ministry of Micro, Small and Medium Enterprises (MSME) known as the National Vendor Development Programme (NVDP) way returned in 1995, occurs to be nicely aligned with these Central authorities initiative. So to provide impetus to this program, MSME has begun aggressively promoting it over the previous few months.
There are styles of Vendor Development Programs (VDPs) being organized via field offices namely Micro, Small and Medium Enterprises Development Institute (MSME-DI) — state level and national level VDPs. The national-level programs are organized over 3 days in the course of which micro and small/medium firms engage with large scale establishments which include BHEL, BEL, NTPC, BSNL, TELCO, NHPC, defense, railway, etc., and set up themselves as potential companies. Business inquiries starting from Rs. 5 million to Rs. 200 million per VDP is being generated via NVDPs.
Under the same version, MSME-DI has additionally State level Vendor Development programs (SVDP) to assist commercial enterprise promoting and industrial development.
Aims of NVDP
The purpose of the program is to broaden linkages between small and big corporations. The objective is to provide a possibility to SMEs to showcase their abilities to various wings of government organizations such as railways, defense institutions, PSUs, and other Large Scale Private Enterprises that outsource to micro and small companies
The 2nd objective is to allow large-scale companies to discover suitable carriers in the MSME sector to forge ‘supplier-vendee’ relationships. This program consequently objectives to increase ability SMEs as vendors for Central ministries.
How the ministry can assist
MSME-DI is assisting SMEs by developing ties between customers and dealers, hence imparting possibilities to become aware of various potential products, develop offerings and evolve indigenized marketing techniques.
MSME, along with the different associations, has been establishing activities and exhibitions in which merchants can display their merchandise and also organize interaction meets with the sellers. These activities are being conducted across the country to generate awareness of approximately the government’s public procurement policy. In the past 3 years, an approximate wide variety of fifty NVDPs had been carried out throughout us of an overlaying vehicle merchandise, electrical and electronics equipment, components, and so forth.
MSME-DI, Delhi, has to date carried out three programs in Delhi, while one program has been lined as much as beheld in Ghaziabad. These are being organized in affiliation with the National Small Industries Corporation (NSIC) and the Small Industries Development Bank of India (SIDBI). Nine programs underneath SVDP have also been performed in Delhi-NCR
Though the public procurement Policy has been in location for some months, yet there has now not been plenty of awareness about this policy. So we are within the recognition-constructing mode, looking to explain the policy and its benefits. As a middleman, our sole motive is to help vendors locate the right consumers. Seeing the lengthy procedures and stringent rules, generally, SMEs are hesitant to method authorities firms. Hence, with this platform, we are looking to bridge the space and assist individual companies to recognize the methods and policies of PSUs.
How one can benefit from National Vendor Development Programme
For a dealer or supplier, a chief problem confronted is figuring out target consumers. Hence, this program offers vendors the opportunity to meet many potential consumers under an equal roof. Through various interactions and commercial enterprise meets, companies can without problems apprehend the requirements of buyers. These programs help companies to understand the schemes and guidelines designed for the merchandising and development of MSMEs, for export promotion and market development.
What an entrepreneur need to do
Interested marketers can sign in and take part in a minimum quantity of Rs. 6000, even as a 50% concession is furnished to SC/ST enterprises amounting to Rs. 3000. For Non-SSI, medium and large enterprises, there’s a nominal price charged. Entrepreneurs exclusively or along with an industry association can advance the Ministry. But, companies in the equivalent industry section can approach MSME-DI. This will support the MSME in determining the best partners.