Tribune News Service

New Delhi, May 21

Defence Minister Rajnath Singh on Thursday said the manufacturing sector had been the worst-hit by the lockdown and the disruption in supply chains, and the defence sector was more aggravated than others as the only buyer of its products was the government.

Addressing a video conference on micro, small and medium enterprises (MSME) e-conclave, Singh said: “There are more than 8,000 MSMEs and partners of many organisations — ordnance factories, DPSUs and service organisations. They contribute more than 20 per cent of the total production of these organisations”.

The MoD, he said, had taken several steps for industries, especially MSMEs, such as extension of response dates of tenders and early clearance of pending payments. The definition of MSME has been revised for expansion. At the same time, there will be no distinction between manufacturing and services sector MSMEs.

In government contracts (procurements) of value Rs 200 crore or less, global tenders will not be allowed. This will help MSMEs to grow their business. In the event of being unable to participate in trade fairs due to Covid-19, e-market linkages will be ensured. The government and PSUs will also ensure the clearance of all outstanding payments in the next 45 days.