Lok Sabha Question No. 786 (UNSTARRED), answered on 2025-07-24
Subject: Public Procurement Policy
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Brijmohan Agrawal

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

## LOK SABHA UNSTARRED QUESTION NO. 786 TO BE ANSWERED ON 24.07.2025

## PUBLIC PROCUREMENT POLICY

## 786. SHRI BRIJMOHAN AGRAWAL:

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

- (a) the  policy  guidelines  for  sourcing  of  goods  by  Central  Ministries,  Departments  and  Central Public Sector Enterprises from MSMEs;
- (b) the details of such procurement made from Micro, Small and Medium Enterprises (MSMEs) during the last five financial years, year-wise;
- (c) the number of MSMEs currently registered in the country and the list of enterprises, State/UTwise including the State of Chhattisgarh;
- (d) whether  any  guidelines  or  instructions  have  been  issued  by  the  Union  Government  to States/UTs to promote procurement under this policy, if so, the details thereof; and
- (e) the  programmes  being  implemented  to  create  awareness  among  enterprises  registered  under MSMEs regarding this policy?

## ANSWER

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

- (a): The  Ministry  of  MSME,  Government  of  India    vide  Gazette  Notification  No.  S.O.  581(E), dated  23 rd March,  2012  notified  the  Public  Procurement  Policy  for  Micro  and  Small  Enterprises (MSEs), Order, 2012. The  Policy (amended in 2018) 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.  As  per  the  Policy, MSEs must  be  provided  tender  sets  free  of  cost  and  they  are  exempted  from  payment  of  Earnest Money Deposit. A total of 358 items are reserved for procurement and have to be sourced from only MSEs, as per the Policy.
- (b): The details of  procurement made from MSEs during the last five financial years, year-wise by CPSEs as per MSME Sambandh Portal are attached as Annexure-I .
- (c): The number of MSMEs currently registered in the country on Udyam Registration Portal(URP) are  6,58,33,368    (as  on  15.07.2025) . The  details  of  MSMEs , State/UT-wise,  including  the  State  of Chhattisgarh are enclosed at Annexure- II .

(d): The Public Procurement Policy for  MSEs Order, 2012 is applicable to Central Government Ministries/  Departments  and  CPSUs.  This  Policy  is  not  applicable  to  State  Government  Ministries/ Departments/ PSUs. To promote the interest of MSEs across the country, communication has been sent by the Ministry of MSME  to  all States/UTs with a request seeking cooperation for implementation of the Policy in their respective States/UTs. 26 States/UTs have aligned their Policies with the Ministries' Policy.

(e): The Government has taken several measures to create awareness among enterprises. Through URP, any MSMEs can link with GeM Platform and participate in Government procurement.

National  Scheduled  Caste  Scheduled  Tribe  Hub  (NSSH)  Scheme  of  the  Ministry  of  MSME aims  at  capacity  enhancement  of  SC/ST  entrepreneurs.  The  Scheme  is  meant  to  empower  SC/ST entrepreneurs to participate in Public Procurement process and facilitate fulfillment of 4% mandatory target of procurement from SC/ST owned enterprises under Public Procurement Policy. The various components  includes Capacity Building, Training and awareness.

Under  the  Procurement  and  Marketing  Support  Scheme  of  the  Ministry  of  MSME,  Vendor Development  Programmes  are  organised  for  creating  awareness  among  enterprises.  In  addition, regular Vendor Development Programmes are also organized by CPSEs.

*****

Annexure-I

## Annexure-I referred to in reply to part (b) of the Lok Sabha Unstarred Question No. 786 for answer on 24.07.2025

## Year wise Annual procurement from MSEs by CPSEs in the Last 5 Years

| F. Years                                | Total Procurement (Rs. in Crores)   | Procurement from MSEs (Rs. in Crores)               | Procurement from MSEs owned by SC/ST (Rs. in Crores)   | Procurement from MSEs owned by Women (Rs. in Crores)   |
|-----------------------------------------|-------------------------------------|-----------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|
| 2020-21 (161 CPSEs)                     | 1,39,419.81                         | 40,717.67 (29.21%) (No. of MSEs Benefited-1,77,594) | 768.53 (0.55%) (No. of MSEs Benefited-6,870)           | 749.20 (0.54%) (No. of MSEs Benefited-5,140)           |
| 2021-22 (162 CPSEs)                     | 1,65,383.04                         | 53,778.58 (32.52%) (No. of MSEs Benefited-2,27,049) | 1,302.50 (0.79%) (No. of MSEs Benefited-10,437)        | 1,713.27 (1.04%) (No. of MSEs Benefited-11,383)        |
| 2022-23 (166 CPSEs 2 Department)        | 1,74,316.32                         | 64,721.65 (37.13%) (No. of MSEs Benefited-2,36,433) | 1,546.91 (0.89%) (No. of MSEs Benefited-10,354)        | 2,318.99 (1.33%) (No. of MSEs Benefited-16,725)        |
| 2023-24 (153 CPSEs and 1 Department     | 1,70,985.96                         | 74,727.12 (43.70%) (No. of MSEs Benefited-2,58,449  | 1,761.78 (1.03%) (No. of MSEs Benefited-11,571         | 3,154.97 (1.85%) (No. of MSEs Benefited-21,339         |
| 2024-25 (149 CPSEs ( As on 22.07.2025 ) | 2,68,653.93                         | 93,911.23 (34.96%) (No. of MSEs Benefited-2,92,733) | 3,576.08 (1.33 %) (No. of MSEs Benefited-21,404)       | 5,949.08 (2.21%) (No. of MSEs Benefited-33,703)        |

Source: MSME SAMBANDH Portal

Annexure-II Annexure-II referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 786 for answer on 24.07.2025

| State Wise Total Enterprises Registered on UDYAM &UAPfrom 01/07/2020 to 15/07/2025   | State Wise Total Enterprises Registered on UDYAM &UAPfrom 01/07/2020 to 15/07/2025   | State Wise Total Enterprises Registered on UDYAM &UAPfrom 01/07/2020 to 15/07/2025   | State Wise Total Enterprises Registered on UDYAM &UAPfrom 01/07/2020 to 15/07/2025   | State Wise Total Enterprises Registered on UDYAM &UAPfrom 01/07/2020 to 15/07/2025   | State Wise Total Enterprises Registered on UDYAM &UAPfrom 01/07/2020 to 15/07/2025   |
|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
| Sl. No.                                                                              | State                                                                                | Micro                                                                                | Small                                                                                | Medium                                                                               | Total                                                                                |
| 1                                                                                    | ANDAMANAND NICOBAR ISLANDS                                                           | 19261                                                                                | 157                                                                                  | 3                                                                                    | 19421                                                                                |
| 2                                                                                    | ANDHRA PRADESH                                                                       | 3360676                                                                              | 16491                                                                                | 942                                                                                  | 3378109                                                                              |
| 3                                                                                    | ARUNACHAL PRADESH                                                                    | 39037                                                                                | 344                                                                                  | 19                                                                                   | 39400                                                                                |
| 4                                                                                    | ASSAM                                                                                | 1183889                                                                              | 6523                                                                                 | 519                                                                                  | 1190931                                                                              |
| 5                                                                                    | BIHAR                                                                                | 3573259                                                                              | 11635                                                                                | 560                                                                                  | 3585454                                                                              |
| 6                                                                                    | CHANDIGARH                                                                           | 68200                                                                                | 1247                                                                                 | 124                                                                                  | 69571                                                                                |
| 7                                                                                    | CHHATTISGARH                                                                         | 1135360                                                                              | 8198                                                                                 | 701                                                                                  | 1144259                                                                              |
| 8                                                                                    | DADRA AND NAGAR HAVELI AND DAMAN AND DIU                                             | 29903                                                                                | 901                                                                                  | 132                                                                                  | 30936                                                                                |
| 9                                                                                    | DELHI                                                                                | 1191761                                                                              | 27734                                                                                | 2689                                                                                 | 1222184                                                                              |
| 10                                                                                   | GOA                                                                                  | 112106                                                                               | 1094                                                                                 | 79                                                                                   | 113279                                                                               |
| 11                                                                                   | GUJARAT                                                                              | 3699208                                                                              | 53058                                                                                | 4124                                                                                 | 3756390                                                                              |
| 12                                                                                   | HARYANA                                                                              | 1669870                                                                              | 22580                                                                                | 1729                                                                                 | 1694179                                                                              |
| 13                                                                                   | HIMACHAL PRADESH                                                                     | 291899                                                                               | 2507                                                                                 | 208                                                                                  | 294614                                                                               |
| 14                                                                                   | JAMMU AND KASHMIR                                                                    | 736820                                                                               | 3162                                                                                 | 203                                                                                  | 740185                                                                               |
| 15                                                                                   | JHARKHAND                                                                            | 1317404                                                                              | 5758                                                                                 | 349                                                                                  | 1323511                                                                              |
| 16                                                                                   | KARNATAKA                                                                            | 4332188                                                                              | 30775                                                                                | 2238                                                                                 | 4365201                                                                              |
| 17                                                                                   | KERALA                                                                               | 1576019                                                                              | 12627                                                                                | 744                                                                                  | 1589390                                                                              |
| 18                                                                                   | LADAKH                                                                               | 18480                                                                                | 112                                                                                  | 2                                                                                    | 18594                                                                                |
| 19                                                                                   | LAKSHADWEEP                                                                          | 2208                                                                                 | 0                                                                                    | 0                                                                                    | 2208                                                                                 |
| 20                                                                                   | MADHYA PRADESH                                                                       | 4133259                                                                              | 19307                                                                                | 1150                                                                                 | 4153716                                                                              |
| 21                                                                                   | MAHARASHTRA                                                                          | 8551716                                                                              | 72793                                                                                | 6694                                                                                 | 8631203                                                                              |
| 22                                                                                   | MANIPUR                                                                              | 147987                                                                               | 412                                                                                  | 17                                                                                   | 148416                                                                               |
| 23                                                                                   | MEGHALAYA                                                                            | 53908                                                                                | 393                                                                                  | 34                                                                                   | 54335                                                                                |
| 24                                                                                   | MIZORAM                                                                              | 44951                                                                                | 207                                                                                  | 6                                                                                    | 45164                                                                                |
| 25                                                                                   | NAGALAND                                                                             | 60701                                                                                | 170                                                                                  | 16                                                                                   | 60887                                                                                |
| 26                                                                                   | ODISHA                                                                               | 2044179                                                                              | 9787                                                                                 | 581                                                                                  | 2054547                                                                              |
| 27                                                                                   | PUDUCHERRY                                                                           | 94030                                                                                | 654                                                                                  | 62                                                                                   | 94746                                                                                |
| 28                                                                                   | PUNJAB                                                                               | 1822767                                                                              | 16546                                                                                | 1205                                                                                 | 1840518                                                                              |
| 29                                                                                   | RAJASTHAN                                                                            | 3735958                                                                              | 26543                                                                                | 1598                                                                                 | 3764099                                                                              |
| 30                                                                                   | SIKKIM                                                                               | 28908                                                                                | 158                                                                                  | 13                                                                                   | 29079                                                                                |
| 31                                                                                   | TAMIL NADU                                                                           | 5270701                                                                              | 38540                                                                                | 2735                                                                                 | 5311976                                                                              |
| 32                                                                                   | TELANGANA                                                                            | 2547334                                                                              | 19604                                                                                | 1749                                                                                 | 2568687                                                                              |
| 33                                                                                   | TRIPURA                                                                              | 271441                                                                               | 679                                                                                  | 45                                                                                   | 272165                                                                               |
| 34                                                                                   | UTTAR PRADESH                                                                        | 7062336                                                                              | 39018                                                                                | 2475                                                                                 | 7103829                                                                              |
| 35                                                                                   | UTTARAKHAND                                                                          | 539209                                                                               | 3945                                                                                 | 270                                                                                  | 543424                                                                               |
| 36                                                                                   | WEST BENGAL                                                                          | 4553732                                                                              | 23323                                                                                | 1706                                                                                 | 4578761                                                                              |
|                                                                                      | Total:-                                                                              | 65320665                                                                             | 476982                                                                               | 35721                                                                                | 65833368                                                                             |