Govt makes 20 pc procurement from MSEs mandatory

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SME Times News Bureau | 09 Dec, 2014
Union Minister for Micro, Small and Medium Enterprises (MSMEs), Kalraj Mishra in a written reply to a question in Lok Sabha in New Delhi on Monday informed that all Central public sector units (CPSUs), Central Government Ministries and Departments must procure 20 percent of products and services from micro and small enterprises (MSEs).

"The Government has issued directions under the Public Procurement Policy for Micro and Small Enterprise (MSEs) Order 2012, to all the Central Public Sector Undertakings (CPSUs), Central Government Ministries and Departments for an overall procurement of minimum of 20 percent of products and services from Micro and Small Enterprises (MSEs) units," said minister.

"This 20 percent procurement from MSEs will be mandatory with effect from 1st April, 2015," he added.

According to government release, the brief details of some of the efforts made by the Government to enhance procurement from MSEs are as follows:-

The communications are being issued from Ministry of MSME to all Central Ministries/Departments/CPSUs to comply with all the provisions of the Public Procurement Policy for MSE, Order 2012.

One to One interaction meetings with CPSUs for enhancing procurement from MSEs by CPSUs are organized.

Stakeholder consultation workshops has been conducted for the awareness and better understanding of the policy.

Vendor Development programme are organized by Field Institutes of this Ministry spread all over India, as well as by CPSUs for developing of MSE Vendors.

For facilitating Match making of buyers and suppliers, a software based upon ITC HS Code has been developed which is a copyright of this Ministry.

Grievance Cell has been opened in this Ministry for sorting out grievances/problems related to procurement.

Review Committee has been constituted to review and monitor the achievements made under the policy.

MSME sector contributes 8 percent of GDP and accounts for around 40 percent of the total exports and around 45 percent of the manufacturing output.

As per the Fourth All India Census of the Micro, Small and Medium Enterprises, total number of Enterprises of the MSME sector is 361.76 lakh of which 15.64 are registered Enterprises. The sector provides employment to 805.24 lakh persons. MSME sector is the largest job provider after agriculture sector.