Promotion of MSME

Promotion of MSME Under the Public Procurement Policy for Micro and Small Enterprises (MSE), minimum share of 20% of total annual purchases of Central Ministries/Departments/PSUs has been reserved for procurement by them from MSEs. Out of 20% share of annual procurement from MSEs, a share of 4% (i.e. 20% out of 20%) has been reserved for procurement from MSEs owned by SC/ST entrepreneurs. For enhancing participation of SC/ST in the Government procurement, every Central Ministries/Departments/PSUs have to organize special vendor development programmes, buyer seller meet, etc.

Ministries/Departments/PSUs have to report the goals set with respect to procurement from MSEs and achievement made thereto in their respective Annual Reports. Those Ministries/Departments/ PSUs which do not meet the mandatory goal of Public Procurement Policy for MSE would be required to provide reasons thereof to the Review Committee which is headed by Secretary, Ministry of Micro, Small & Medium Enterprises.

Ministry of Defence, on account of its unique nature, had reservations about implementation of Public Procurement Policy for MSEs. Keeping this in view, defence armaments imports, weapon systems, missiles, etc. have been kept out of purview of the Policy.

This information was given by the Union Cabinet Minister for Micro, Small and Medium Enterprises, Shri Virbhadra Singh in a written reply to a question in the Lok Sabha