Matters related to MSMEs

Introduction:

Public Procurement Policy for MSEs Order, 2012 has been notified by Ministry of Micro, Small and Medium Enterprises (M/o MSME) under section 11 of MSMED Act, 2006. The Policy is effective from 1st April 2012 (Gazette notification on 26th March 2012).

The objective of Policy is promotion and development of Micro and Small Enterprises by supporting them in marketing of products produced and services rendered by them. However, the policy rests upon core principle of competitiveness, adhering to sound procurement practices and execution of supplies in accordance with a system which is fair, equitable, transparent, competitive and cost effective.

As per the latest revision of this Policy, it is mandated for the Central Government Departments and Public Sector Enterprises to procure 25% of their total annual procurements from MSEs. Out of this 25% target, a sub-target of 4% (within the 25% target) of annual procurement from MSEs is earmarked for procurement from MSEs owned by Scheduled Castes (SCs)/ Scheduled Tribes (STs) entrepreneurs and 3% (within the 25% target) of annual procurement from MSEs is earmarked for procurement from MSEs owned by Women entrepreneurs.

The entities under MoPNG follow the provisions prescribed under MSE Order, 2012 by M/o MSME.