Lok Sabha Question No. 547 (UNSTARRED), answered on 2021-02-04
Subject: Public Procurement Policy for MSEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Jayant Sinha

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

## LOK SABHA UNSTARRED QUESTION No. 547 TO BE ANSWERED ON 04.02.2021

## PUBLIC PROCUREMENT POLICY FOR MSEs

## 547. SHRI JAYANT SINHA:

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

- (a) the  objectives  of  the  Public  Procurement  Policy  for  Micro  and  Small  Enterprises (MSEs);
- (b) the  total  annual  procurement  from  such  MSEs,  sector-wise,  category-wise (buyers), and year-wise during the last three years; and
- (c) the  total  annual  procurement  from  such  MSEs  in  Jharkhand  along  the  same parameters?

## ANSWER

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

(a): The Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 has been notified by this Ministry, under Section 11 of MSMED  Act,  2006,  the same being effective  from 1st April, 2012, and has become mandatory w.e.f. April 2015. The policy was amended vide Gazette Notification No. S.O. 5670(E), dated 9th November, 2018. The said Policy, as amended, mandates 25% annual procurement from MSEs by Central Ministries/ Departments/ Central Public Sector Enterprises (CPSEs) including 4% from MSEs owned by SC/ST and 3% from MSEs owned by Women entrepreneurs.

(b): As per information reported by Central Public Sector Enterprises (CPSEs) on MSME SAMBANDH  Portal,  the  details  of  the  annual  procurement  of  goods  and  services  from MSEs, by CPSEs and year-wise during the last three years (as on date 01.02.2021) is given as under:

| Financial Year   | Buyers    | Total Procurement (Rs in Crores)   | Procurement from MSEs(including SC/ST owned MSEs) (Rs in Crores)   | Procurement from MSEs owned by SC/ST (Rs in Crores)   | Procurement from MSEs owned by Women (Rs in Crores)   |
|------------------|-----------|------------------------------------|--------------------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
| 2017-18          | 169 CPSEs | 114,042.05                         | 26357.46 (23.11%) (No. of MSEs benefited 89631)                    | 544.72 (0.48%) (No. of MSEs benefited 2255)           | -                                                     |
| 2018-19          | 165 CPSEs | 153,477.05                         | 40,399.54 (26.32%) (No. of MSEs benefited 128124)                  | 824.71 (0.54%) (No. of MSEs benefited 4587)           | 232.56 (0.15%) (No. of MSEs benefited 1410)           |
| 2019-20          | 136 CPSEs | 123,717.50                         | 38,275.11 (30.94%) (No. of MSEs benefited 156744)                  | 685.21 (0.55%) (No. of MSEs benefited 6313)           | 390.90 (0.32%) (No. of MSEs benefited 3613)           |

Information are available CPSE-wise, and not Sector-wise or Category-wise.

- (c): As  per  available  information,  Sector-wise  figures  are  not  maintained.  Total  annual procurement under the said Policy in Jharkhand State from MSEs is as under:

| Financial Year   |   Buyers |   Total Procurement from MSEs in Jharkhand Rs.(In crores) |
|------------------|----------|-----------------------------------------------------------|
| 2017-18          |        9 |                                                    148.21 |
| 2018-19          |        9 |                                                    139.89 |
| 2019-20          |        9 |                                                    207.22 |

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