Lok Sabha Question No. 5312 (UNSTARRED), answered on 2019-07-25
Subject: Public Procurement Policy for SMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: P. Velusamy

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

## LOK SABHA UNSTARRED QUESTION NO. 5312 TO BE ANSWERED ON 25.07.2019

## PUBLIC PROCUREMENT POLICY FOR SMEs

## 5312.        SHRI VELUSAMY P. :

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

- (a) the  details  of  Government's  Public  Procurement  Policy  for  Small  and  Medium Enterprises (SMEs) as per order issued on April 25, 2012 which stipulates that all Central Ministries and Central  Public  Sector  Undertakings  (CPSUs)  should  ensure  at least 20% of procurement  from  SMEs  and  within  this  4%  should  be  from  the  Enterprises  promoted  by SCs/STs;
- (b) if so, the total value of CPSUs procurement for the past three years and for the current year;
- (c) the details of procurement from industries/enterprises promoted by SCs/STs;
- (d) whether the Government has received any request/complaint from Dalit Chamber of Commerce and Industry in this regard and if so, the details thereof; and
- (e) the steps taken by the Government to achieve the targets under above policy?

## ANSWER

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

- (a):      The  Government  has  notified  Public  Procurement  Policy  for  Micro  and  Small Enterprises  (MSEs)  Order,  2012  under  MSMED  Act.  Under  this  policy,  25%  of  annual procurement by Central Ministries /Departments/Public Sector Enterprises (CPSEs) has to be made from Micro & Small enterprises. This includes 4% from MSEs owned by SC/STs and 3% from MSEs owned by Women entrepreneurs.
- (b) & (c):   As per information uploaded on Sambandh portal for 2017-18,  2018-19 & current year till 22 nd July, 2019, the details of annual procurement of goods & services from MSEs including SC/ST by the Central Public Sector Enterprise (CPSE) are as under:
- (d): The Government receives representations from various MSEs and Industry Associations from time to time and these are addressed in accordance with the provisions of the Policy.
- (e): For effective monitoring of the implementation of Public Procurement Policy, MSME Sambandh portal has been launched.

| Year                            |   No. of CPSEs (Reported) |   Total Procurement (Rs. in Crore) |   Procurement From MSEs (Rs. in Crore) |   Procurement from MSEs owned by SC/ST Entrepreneur (Rs. in Crore) |
|---------------------------------|---------------------------|------------------------------------|----------------------------------------|--------------------------------------------------------------------|
| 2017-18                         |                       170 |                           114042   |                               26357.5  |                                                             544.72 |
| 2018-19                         |                       162 |                           152620   |                               40303.3  |                                                             823.87 |
| 2019-20 (Till 22 nd July, 2019) |                        77 |                            22658.6 |                                5631.38 |                                                             100.38 |

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