Procurement Policy: Govt clarifies definition of MSE owned by SC/ST

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SME Times News Bureau | 26 Jun, 2013
A statement released by the Ministry of micro, small and medium enterprise (MSME)Tuesday said that the micro and small enterprises (MSEs) having 51 percent stake by SC/ST will be entitled to reservation under government procurement policy for MSME sector.

"Under the provision of para 16 of aforesaid policy, definition of MSEs owned by SC/ST is clarified by the Ministry of MSME as: In case of proprietary MSE, proprietor(s) shall be SC/ST. Second, in case of partnership MSE, the SC/ST partners shall be holding at least 51 percent shares in the unit. And third, in case of Private Limited companies, at least 51 percent share shall be held by SC/ST promoters," the release said.

The Government introduced Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 which is notified under MSMED Act 2006.

The Public Procurement Policy mandates every Central Ministries/ Departments/ CPSUs to set an annual goal for procurement from the MSE sector from the 1st April 2012 with objective of achieving an overall procurement of minimum 20 percent of their total annual purchases value from products produced/ services rendered by MSEs within a period of three years.

The Policy also earmarked 4 percent share out of this 20 percent Procurement from MSEs owned by SC/ST entrepreneurs, it added.