Lok Sabha Question No. 1276 (UNSTARRED), answered on 2016-05-02
Subject: Public Procurement Policy
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: PRALHAD VENKATESH JOSHI

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED  QUESTION NO. 1276 TO BE ANSWERED ON:  02.05.2016

## PUBLIC PROCUREMENT POLICY

## 1276.    SHRI PRALHAD JOSHI:

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

- (a) whether    various  Ministries,  Departments  and  Public  Sector  Undertakings  (PSUs) have  been  able  to  abide  by  the  20%  procurement  from  the  Micro,  Small  and  Medium Entrepreneurs    of their annual goods or services as stipulated by the Public Procurement Policy  for MSMEs  Order during each of the last three years;
- (b) if so, the details thereof, Ministry-wise;
- (c) whether  any  of  the  entities  mandated  by  the  Order  have  not  procured  the  required 20% from the MSMEs and if so, the  details thereof and the reasons therefor  alongwith the steps taken by the Government in this regard; and
- (d) whether any exemptions have been made by the Government on request to this Order and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a) to (c): The  Government  of  India    has    notified  the  Public  Procurement  Policy  for Micro  and  Small  Enterprises  (MSEs)    Order    2012,  which  is  applicable  to  Central Ministries/Departments/CPSUs    with  the  objective  of  achieving  an  overall  procurement  of minimum of 20% of total annual purchases of products produced and services rendered  by Micro & Small Enterprises which has become mandatory  w.e.f. 1st April,  2015.   A sub target  of  4%  out  of  this    20%  target  of  annual  procurement  has  been  earmarked  for procurement from MSEs owned by SC/ST entrepreneurs.

As  per  data  furnished  by  Central  Ministries/  Departments  and  PSUs,  the  details  of procurement for last three years is at Annex - I.

- (d): The  details  of  exemption  provided  (item-wise)  since  the  implementation  of this Order is at Annex-II.

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Annex-I

Annex I referred to in reply to parts (a) to (c) of the Lok Sabha un-starred question No. 1276 for answer on 2.5.2016.

## Details of Procurement reported by Ministries/Departments /CPSUs for the last three years

(Figures in Rs.  Crore)

| Sl. No.   | Year             | 2012-13                    | 2012-13           | 2013-14                    | 2013-14           | 2014-15                    | 2014-15           |
|-----------|------------------|----------------------------|-------------------|----------------------------|-------------------|----------------------------|-------------------|
|           |                  | Total annual procure- ment | MSE procure- ment | Total annual procure- ment | MSE procure- ment | Total annual procure- ment | MSE procure- ment |
| 1         | Govt. Ministries | 284.47                     | 62.17             | -                          | -                 | 1500.32                    | 36.50             |
| 2         | Govt. Deptts.    | 43.44                      | 0.74              | -                          | -                 | 2566.96                    | 104.90            |
| 3         | CPSUs            | 84155.18                   | 12886.08          | 82535.55                   | 12425.89          | 131766.86                  | 15300.57          |
|           | Grand total      | 84483.09                   | 12948.99          | 82535.55                   | 12425.89          | 135834.14                  | 15441.97          |

Source  : As per data furnished by Central Ministries/ Departments and PSUs.

## Annex II referred to in reply to part (d) of the Lok Sabha un-starred question No. 1276 for answer on 2.5.2016.

## Details of Exemption given for procurement of products from Non-MSEs

|   Sl No. | Name of the Ministry/ Department                             | Name of the Product    | Total Quantity                                                              |
|----------|--------------------------------------------------------------|------------------------|-----------------------------------------------------------------------------|
|        1 | Ministry of Defence (Armed Force)                            | Drums and Barrels      | 6,000 (Six Thousand)                                                        |
|        2 | Ministry of Defence (Armed Force)                            | Barrels                | 7,00,000 (Seven Lakhs)                                                      |
|        3 | Ministry of Home Affairs (Central Reserve Police Force)      | Footwears              | 30,000 (Thousand) pairs of Shoes                                            |
|        4 | Ministry of Home Affairs (Central Industrial security Force) | Cloth for Shirt Angola | 74,375 meters (Seventy four Thousand and Three Hundred Seventy Five meters) |