Lok Sabha Question No. 3789 (UNSTARRED), answered on 2021-03-18
Subject: Promotion of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Prathap Simha, L.S. Tejasvi Surya

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

## LOK SABHA UNSTARRED QUESTION No. 3789 TO BE ANSWERED ON 18.03.2021

## PROMOTION OF MSMEs

3789.

SHRI PRATHAP SIMHA:

SHRI L.S. TEJASVI SURYA:

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

(a) whether there has been a significant improvement in the health of MSMEs following the Government's Atmanirbhar Bharat announcement not to permit global tenders upto Rs 200 crore and if so, the details thereof;

(b) whether the Government is aware that certain tender announcements request companies to submit irrelevant technical certificates not issued by any Indian agencies like Electronic Products Environmental  Assessment  Tool,  instead  of  relying  on  Indian  certificates  like  BIS,  EPR,  ISO 140001 etc; and

- (c) if  so,  the  measures  taken  by  the  Government  to  promote  MSMEs  in  participating  in tenders below Rs 200 crore?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

(a): As  reported  by  Department  for  Promotion  of  Industry  and  Internal  Trade  (DPIIT), Ministry  of  Commerce  and  Industry,  the  Public  Procurement  is  a  sizeable  share  of  Indian Economy.  To  promote  domestic  investment  and  usage  of  made  in  India  products  by  the Government,  Government  of  India  has  revised  the  Public  Procurement  (Preference  to  Make  in India) Order, 2017 on 16.09.2020. The salient features of the order are:-

-  For Government purchases of less than Rs. 200 crore, global tender enquiry shall not be issued.
-  Suppliers offering items with minimum 50% domestic value addition will get purchase preference over other suppliers in government procurement.
-  Suppliers offering items with less than 20% domestic value addition can't participate in domestic/national bidding process.
-  Nodal  Ministries/  Departments  have  been  authorized  to  notify  higher  minimum  local content requirement for Class-I/ Class-II local suppliers i.e. higher than 50/20%.
- (b): No, Sir.

(c): Government is enforcing the Public Procurement (Preference to Make in India) Order to further encourage the domestic manufacturing base, facing severe constraint due to the pandemic situation globally, establish more joint ventures within the country and for India to take a lead as an important player in the global and domestic supply chain. The changes have been undertaken to  enhance  the  participation  of  domestically  produced  goods  and  services  in  the  Government procurement process. Government of India has also modified the General Financial Rules (GFRs), so  that  any  bidder  having  beneficial  ownership  /  financial  relationship  with  investments  from countries  sharing  land  border  with  India  would  now  be  eligible  to  bid,  only  after  the  bidder  is registered after a rigorous scrutiny. This step has been taken keeping in mind National security and National requirement for such a bidder in all Government procurements.

For providing marketing support to MSEs all Central Ministries/ Government Department and CPSEs are required to procure 25% of their annual requirements of goods and services from MSEs  including  4%  from  MSEs  owned  by  SC/ST  and  3%  from  MSEs  owned  by  women entrepreneurs under the public procurement policy. The progress of procurements from MSEs is regularly  monitored  through  MSME-SAMBANDH  portal.  Procurement  from  MSEs  has  been increased from 26.32% in 2018-2019 to 31.69 % in 2019-2020 benefiting 1,28,124 and 1,57,664 MSEs    respectively  during  the  said  period.  We  have  overachieved  the  target  minimum  of  25 percent,  as  set  in  November,  2018.  During  the  current  FY,  as  on  date  (15.03.2021),  the  public procurement from the MSEs is to the extent of Rs 31,292.09 Cr (31.51%), benefitting 1,35,580 MSEs (till 15.03.2021).

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