Lok Sabha Question No. 557 (UNSTARRED), answered on 2025-02-06
Subject: Public Procurement Policy
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Raja A

## 557. SHRI RAJA A:

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

- (a) the details of total procurement from MSME Units by various Ministries, Departments, Central Public  Sector  Enterprises  (CPSEs)  and  autonomous  bodies  of  Union  Government  as  per  the  public procurement  policy,  2012  with  modifications  to  enhance  in  supporting  MSME  in  marketing  their products and services, during the last three years;
- (b) whether the Government is doing any follow up action on public procurement policy to ensure that wide support is available from various Ministries, if so, the details thereof; and
- (c) whether any pro-active action is initiated by the Government and including steps taken to remind periodically all Departments for supporting MSME in marketing and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): According to the data available on the MSME Sambandh Portal, the details of total procurement made in accordance with the Public Procurement Policy for Micro and Small Enterprises Order, 2012 during the last 3 years are given below:
- (b) and (c): A number of measures and steps have been taken by the Ministry of MSME to enhance the procurement from Micro and Small Enterprises (MSEs), as outlined below:
- i. The Ministry of MSME launched 'MSME-SAMBANDH Portal' on 8 th December, 2017. The Portal helps in monitoring the procurement by Central Government Ministries, Departments and Central  Public  Sector  Enterprises  (CPSEs)  and  enables  them  to  share  the  list  of  required products/services from MSEs.
- ii. The  Ministry  of  MSME is  actively  engaged  with  Department  of  Public  Enterprises  for  better coordination with CPSEs for achieving the targets under the Policy. The Ministry of MSME also issues communications and clarifications on the Public Procurement Policy for MSEs, whenever required or asked for.

| F.Y                        | Total Procurement (Rs. in Crore)   | Procurement from MSEs (Rs. in Crore)   | Procurement from MSEs owned by SC/ST (Rs. in Crore)   | Procurement from MSEs owned by Women (Rs. in Crore)   |
|----------------------------|------------------------------------|----------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
| 2022-23                    | 1,74,316.30                        | 64,721.65                              | 1,546.91                                              | 2,318.99                                              |
| 2023-24                    | 1,70,930.01                        | 74,717.24                              | 1,757.26                                              | 3,152.80                                              |
| 2024-25 (as on 03-02-2025) | 1,47,896.65                        | 60,752.34                              | 1,893.31                                              | 3,230.86                                              |

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 557 TO BE ANSWERED ON 06.02.2025

## PUBLIC PROCUREMENT POLICY

- iii. Government  e-marketplace  (GeM),  an  online  portal,  is being  used  for  procurement  by Ministries/  Departments/  CPSEs.  Follow  up  with  GeM  for  supporting  SC,  ST  and  Women entrepreneurs on various issues is done on a regular basis.
- iv. Vendor Development Programmes under the Procurement & Marketing Support Scheme serve as platforms, where MSEs can network with not only CPSEs but with also other stakeholders.
- v. The  Ministry  of  MSME  has  introduced  a  Special  Credit  Linked  Capital  Subsidy  Scheme (SCLCSS)  under  National  SC-ST  Hub  Scheme  to  promote  setting  up  of  new  enterprises  by aspiring  entrepreneurs  and  capacity  building  of  existing  MSEs  for  enhanced  participation  of SC/ST  entrepreneurs  in  the  public  procurement.  All  the  SC-ST  owned  MSEs  engaged  in manufacturing as well as services sector are eligible for 25% subsidy under SCLCSS component of  National  SC/ST  Hub  for  procurement  of  Plant  and  Machinery  and  equipment  through institutional credit.
- vi. Special  Vendor  Development  Programmes/  Buyer-Seller  Meets  are being conducted  by Departments/ CPSUs for SC/STs and women owned MSEs.

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