The Tamil Nadu government will amend the Transparency in Tenders Act to implement its decision (announced in the budget) to reserve 5% of all divisible procurement by the government and its agencies for Tamil Nadu-based entrepreneurs belonging to the Scheduled Castes and the Scheduled Tribes.
Indicating this, officials said on Friday that the decision would cover only “manufactured products” and not “trading products”. For instance, if Tamil Nadu Generation and Distribution Corporation (TANGEDCO) plans to buy 100 units of distribution transformers, it has to set apart 5% of the units for the companies owned by SC/ST entrepreneurs. But this principle cannot be applied to a road contract which is “not divisible”.
The stipulation will assume more relevance in respect of entities such as TANGEDCO, the State Transport Corporations, Aavin, Chennai Metrowater and the Tamil Nadu Water Supply and Drainage Board than others, the officials added.
K.S. Bhagyalakshmi, vice-president of the Tamil Nadu chapter of the Dalit Indian Chamber of Commerce and Industry, said the decision marked the fulfillment of one of the demands of organisations like hers, citing the Union government’s policy of setting aside 4% for the units owned by the SCs/STs out of the overall 25% annual procurement from micro and small enterprises. She also commended the government for creating a corpus of ₹30 crore for supporting start-ups of the SC/ST entrepreneurs. The measure would promote entrepreneurial spirit among the community, she said.
