Lok Sabha Question No. 5546 (UNSTARRED), answered on 2018-04-02
Subject: Public Procurement Policy
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: George Baker, ANIL SHIROLE, PARBHUBHAI NAGARBHAI VASAVA, AJAY (TENI) MISRA

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 5546 TO BE ANSWERED ON 02.04.2018

## PUBLIC PROCUREMENT POLICY

## 5546.     SHRI GEORGE BAKER:

SHRI ANIL SHIROLE:

SHRI PARBHUBHAI NAGARBHAI  VASAVA:

SHRI AJAY MISRA TENI:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the  details  and  the  salient  features  of  the  public  procurement  policy,  target  set,  the number  of  items  reserved  for  procurement  and  the  achievements  made  under  the  policy across the country so far;
- (b) whether the Government is satisfied with the achievements, if not, the reasons therefor and the corrective steps taken by the Government in this regard;
- (c) whether  the  Ministry  of  Defence  also  makes  minimum  20%  procurements  from  the MSMEs, if so, the details thereof and if not, the reasons therefor along with the corrective steps taken by the Government in this regard; and
- (d) whether the Government has received any proposal from certain States to organise a National level Vendor Development Programme under this policy across the country and if so, the details thereof and the action taken by the Government in this regard, State/UT-wise including West Bengal and Maharashtra?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

- (a): As per the Public Procurement Policy every Central Ministry/Department/ CPSE will procure a minimum of 20 per cent of the total annual purchases of the goods or services from Micro & Small Enterprises (MSEs). The policy  includes other benefits  such as exemption from Earnest Money Deposit (EMD), free of cost tender set, price preference and reservation of 358 items for procurement exclusively from MSEs.

As  per  the  annual  procurement  data  uploaded  by  the  133  CPSEs  in  'MSMESAMBANDH' portal of Ministry of MSME, total procurement from MSEs till 26th March, 2018 is Rs. 19815.25 Cr. (22.13%).

- (b): The  steps  taken  for  ensuring  effective  implementation  of  the  Public  Procurement Policy, includes constitution of a grievance cell for redressing grievances of MSEs relating to government  procurement,  a  committee  to  review  the  progress  of  procurement  made  by CPSEs from MSEs and the launch of  MSME SAMBANDH portal for ascertaining of the procurement.
- (c): As per the  information  available  on  MSME  SAMBANDH  portal  CPSEs  under  the Ministry of Defence have procured goods and services worth Rs. 2015.1825 Crores (25.58%) from MSEs during the financial year 2017-18 (till 26 th March, 2018).
- (d): The details of Vendor Development Programme organized by the Ministry of MSME in the various States including West Bengal and Maharashtra are given at Annexure.

## Annexure referred to in reply to part (d) of the Lok Sabha Unstarred Question No. 5546 for answer on 02.04.2018.

## State wise information on Physical Performance of Vendor Development Programme (VDP):

| Sl. No   | State                                                   |   No. of State Level Vendor Development Programme (SVDPs) | No. of National Level Vendor Development Programme (NVDPs)   |   No. of Participants |
|----------|---------------------------------------------------------|-----------------------------------------------------------|--------------------------------------------------------------|-----------------------|
| 1.       | Andhra Pradesh                                          |                                                         5 | 2                                                            |                   438 |
| 2.       | Assam (including Arunachal Pradesh and Meghalaya)       |                                                        10 | 1                                                            |                   485 |
| 3.       | Bihar                                                   |                                                         9 | 1                                                            |                   527 |
| 4.       | Chhattisgarh                                            |                                                         5 | 1                                                            |                   474 |
| 5.       | Delhi                                                   |                                                        10 | 3                                                            |                   698 |
| 6.       | Goa                                                     |                                                         3 | _                                                            |                   178 |
| 7.       | Gujarat ( including Dadar &Nagar Haveli and Daman &Diu) |                                                        12 | 2                                                            |                   850 |
| 8.       | Haryana                                                 |                                                         7 | 1                                                            |                   600 |
| 9.       | Himachal Pradesh                                        |                                                         4 | 1                                                            |                   299 |
| 10.      | Jammu &Kashmir                                          |                                                         2 | _                                                            |                    67 |
| 11.      | Jharkhand                                               |                                                         7 | 1                                                            |                   374 |
| 12.      | Karnataka                                               |                                                        26 | 3                                                            |                  1111 |
| 13.      | Kerala (including Lakshadweep)                          |                                                         7 | 1                                                            |                   320 |
| 14.      | Madhya Pradesh                                          |                                                         8 | _                                                            |                   482 |
| 15.      | Maharashtra                                             |                                                        11 | 6                                                            |                   656 |
| 16.      | Manipur( including Nagaland)                            |                                                         1 | _                                                            |                    50 |
| 17.      | Odisha                                                  |                                                        10 | 1                                                            |                   511 |
| 18.      | Punjab (including Chandigarh)                           |                                                         6 | 1                                                            |                   357 |
| 19.      | Rajasthan                                               |                                                        10 | 1                                                            |                   785 |
| 20.      | Sikkim                                                  |                                                         0 | _                                                            |                     0 |
| 21.      | Tamil Nadu ( including Puducherry)                      |                                                        21 | 5                                                            |                  1549 |
| 22.      | Telangana                                               |                                                         5 | 3                                                            |                   706 |
| 23.      | Tripura ( including Mizoram)                            |                                                         0 | _                                                            |                     0 |
| 24.      | Uttar Pradesh                                           |                                                        22 | 4                                                            |                  1694 |
| 25.      | Uttarakhand                                             |                                                         6 | 1                                                            |                   550 |
| 26.      | West Bengal (including Andaman &Nicobar)                |                                                         9 | 3                                                            |                  1679 |
| Total    | Total                                                   |                                                       216 | 42                                                           |                 15440 |