New Delhi, April 2 (IANS): The government has formed a committee to look into the problems affecting the country's micro, small and medium enterprises (MSMEs).

This has been done in view of the decision that all government entities must source 20 percent of their requirements from small-scale units from next year.

"The government has formed a committee under the Secretary MSME, which will review all the problems being faced by small scale units and give its recommendation," Jasbir Singh, general manager of the state-run National Small Industries Corp (NSIC) said here Wednesday at a Federation of Indian Chambers of Commerce and Industry (FICCI)-organised seminar on micro small and medium enterprises (MSMEs).

"From 1st April 2015 it will be mandatory for all government departments to implement the public procurement policy by which 20 percent of all government and public sector unit procurements have to be from SSI (small scale industry) units," he added.

Currently, though every ministry except for defence is required to procure a minimum of 20 percent of annual value of goods and services from micro and small enterprises, many ministries are yet to come up with procurement plans.

The government has thus started a review of the public procurement policy both at national and state levels.

Singh said there are 350 items reserved under the government's procurement policy by which it can only source these items from small units.

Speaking earlier, president of FICCI's MSME cell Sanjay Bhatia said the chamber would provide members cost-effective, quality MSME insurance services.