Lok Sabha Question No. 3019 (UNSTARRED), answered on 2025-12-18
Subject: Public Procurement Policy for MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Manju Sharma

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3019 TO BE ANSWERED ON 18.12.2025

## PUBLIC PROCUREMENT POLICY FOR MSMEs

3019. SMT.  MANJU SHARMA:

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

- (a) the  steps  taken  by  the  Government  to  promote  ease  of  doing  business  for  Micro,  Small  and Medium Enterprises (MSMEs);
- (b) the efforts made by the Government to provide a conducive environment to MSMEs in post Corona period; and
- (c) the  steps  taken  by  the  Government  for  smooth  implementation  of  the  Public  Procurement Policy for MSMEs?

## ANSWER

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

(a) and (b):  The Government of India has taken a number of steps to promote ease of doing business for Micro, Small and Medium Enterprises (MSMEs) and provide a conducive environment to them. Some of these steps are as under:

- i. New revised criteria for defining MSMEs adopted in 2020. This has been further revised w.e.f. 01.04.2025, so  as to  create  upward  mobility  in  technology,  skilling  and  business  growth  and promote transformation of MSMEs and support their expansion.
- ii. Udyam  Registration Portal for  MSMEs,  for  Ease  of Doing  Business, launched w.e.f. 01.07.2020.
- iii. Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 02.07.2021.
- iv. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- v. Launch of Udyam Assist platform on 11.01.2023 to bring Informal Micro Enterprises under the formal ambit for availing the benefit under Priority Sector Landing.
- vi. Operationalisation of Self Reliant India Fund for equity infusion into MSMEs.
- vii. Under Credit Guarantee Scheme (CGS) for Micro and Small Enterprises, guarantee is provided to Member Lending Institutions for the credit extended by them to MSEs without any collateral security or third-party guarantee. Additional corpus fund of Rs. 9,000 crore was infused into the corpus  of  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises  (CGTMSE),  as announced in the Union Budget 2023-24 to enable an additional credit of Rs. 2.00 lakh crore, at a reduced cost of credit.
8.  Launch of Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), for businesses, including  MSMEs.  The  Scheme  was  operational  till  31.03.2023.  As  per  a  research  report  dated 23.01.2023  of  the  State  Bank  of  India  on  ECLGS,  almost  14.6  lakh  MSME  accounts,  of  which about 98.3% of the accounts were in the Micro and Small Enterprises categories, were saved from slipping into non-performing asset classification.

-  To provide relief and support to MSMEs in post Corona period, Vivad se Vishwas I - Relief for MSMEs  (VsV-I)  Scheme  was  launched  by  Department  of  Expenditure,  Ministry  of  Finance, Government  of  India  on  11.04.2023.Under  the  Scheme,  relief  by  way  of  refund  of  95%  of  the deducted performance security, bid security and liquidated damages was provided for Government contracts  entered  during  COVID  19  period.  Relief  was  also  provided  to  MSMEs  debarred  for default in execution of contracts. More than 60,000 claims of MSMEs vendors were finalised under the scheme. In addition, the delivery period was extended for all contracts, including PPP contracts by 3 to 6 months without any penalty.

(c): For smooth implementation of the public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012, a number of steps have been taken by the Ministry of MSME, as outlined below:

- (i) The Ministry of MSME launched 'MSME-SAMBANDH Portal' on 8th December, 2017. The Portal  helps  in  actively  monitoring  the  procurement  by  Central  Government  Ministries, Departments and Central Public Sector Enterprises (CPSEs).
- (ii) The Ministry of MSME is actively engaged with Department of Public Enterprises, Ministry of Finance  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.
- (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 is done on a regular basis.
- (iv) Vendor Development Programmes under the Procurement and Marketing Support Scheme serve as  platform  for  MSEs,  where  MSEs  can  network  with  not  only  CPSEs  but  with  also  other stakeholders. Special Vendor Development Programmes/ Buyer-Seller Meets are being conducted by Departments/ CPSUs for SC/STs and women owned MSEs.
- (v) Special Credit Linked Capital Subsidy Scheme (SCLCSS) under National SC-ST Hub Scheme promotes  setting  up  of  new  enterprises  by  aspiring  SC/ST  entrepreneurs  and  their  capacity building for enhanced participation in public procurement.

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