Lok Sabha Question No. 808 (UNSTARRED), answered on 2019-11-21
Subject: Public Procurement Policy for MSEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ganesh Singh, Rahul Gandhi

## LOK SABHA UNSTARRED QUESTION NO. 808 TO BE ANSWERED ON 21.11.2019

## PUBLIC PROCUREMENT POLICY FOR MSEs

## 808. SHRI GANESH SINGH: SHRI RAHUL GANDHI:

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

(a) whether  as  per  Public  Procurement  Policy  for  Micro  and  Small  Enterprises (MSEs)  Order,  2018,  the  Ministry  and  its  subsidiaries/joint  ventures  have  set  an annual target for 25% procurement from MSME Sector and a sub-target of 4% out of 25% target of annual procurement has been earmarked for procurement from MSMEs owned by SC/ST entrepreneurs and if so, the details thereof;

(b) whether the CPSUs under the Ministry are implementing this policy and if so, the details thereof;

(c) whether the said policy is being followed in the case of OBC entrepreneurs at par with SCs/STs, if so, the details thereof and if not, the reasons therefor;

(d) whether  Central  Ministries/  Departments  and  PSUs  have  met  the  mandatory target of 25% procurement from Micro and Small Enterprises since April 1, 2015 and if so, the details thereof and if not, the reasons therefor; and

(e) the  measures  being  implemented  to  ensure  compliance  with  25%  target  of procurement from MSEs?

## ANSWER

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

(a)  &  (b):      Under  Public  Procurement  Policy  for  Micro  and  Small  Enterprises (MSEs),  the  CPSEs  have  to  procure  25%  from  MSEs  including,  4%  from  MSEs owned by SC/ST and 3% from MSEs owned by Women.

The  policy  is  applicable  to  all  the  Central  Ministries  /  Departments  /  Public Sector Undertakings (PSUs) and mandates at least 25% of annual procurement by the Central Ministries/ Departments and CPSEs from Micro and Small Enterprises.

- (c): No, Sir.

(d) & (e): Ministry has taken several measures for effective implementation of the policy.  These  include  constitution  of  Review  Committee,  Launch  of  SC/ST  hub  to provide  support  SC/ST  entrepreneurs  and  launch  of  MSME  Sambandh  portal  to monitor the  progress of procurement made  by Central Ministries / Departments  and Central Public Undertakings (CPSUs).

As  per information  uploaded on Sambandh  portal, the details of annual procurement of goods & services from MSEs including SC/ST  and  Women by the Central Public Sector Enterprise (CPSE) during the last three years are as under:

| Year     |   No. of CPSEs (Reported) |   Total Procurement (Rs. in Crore) |   Procurement FromMSEs (Rs. in Crore) |   Procurement from MSEs owned by SC/ST Entrepreneur (Rs. in Crore) | Procurement from MSEs owned by Women Entrepreneur (Rs. in Crore)   |
|----------|---------------------------|------------------------------------|---------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|
| 2017-18  |                       170 |                           114042   |                               26357.5 |                                                             544.72 | -                                                                  |
| 2018-19  |                       164 |                           153309   |                               40343.1 |                                                             823.86 | 231.50                                                             |
| 2019-20* |                       106 |                            60278.1 |                               17427.4 |                                                             305.1  | 249.83                                                             |

* as on 15/11/2019

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