Central Public Sector Enterprises (CPSE) have procured goods and services worth Rs 24226.51 crore from Micro, Small and Medium Enterprises (MSME) during 2017-18, said Giriraj Singh, Minister of State, MSME, in the Lok Sabha. Out of this amount, the share of procurement from MSMEs owned by SC/ST entrepreneurs is Rs 442.52 crore, he added.
Annual procurement by CPSEs in the last four years, as per information provided by Department of Public Enterprises (DPE), is:
In the recent past, Ministry of MSME has taken several measures for the implementation of the Public Procurement Policy. These include the establishment of a review committee to monitor the progress of implementation of Public Procurement Policy, launch of a special hub to provide support to SC/ST entrepreneurs, and the launch of the MSME Sambandh portal to monitor progress of procurement from MSMEs (these include MSMEs owned by SC/ST and women).
According to the Public Procurement Policy for MSME, each Central Ministry, Department, or PSU should set an annual goal of procuring a minimum 20 percent of their total annual purchases from the products or services produced or rendered by MSMEs.
The government recently revised the order and made it compulsory for all CPSEs to procure 25 percent of their total purchases from MSMEs, instead of the initial 20 percent. Further, the order states that out of the total annual procurement from MSMEs, three percent should be earmarked for procurement from MSMEs owned by women. Additionally, four percent of annual procurement is earmarked for procurement from MSMEs owned by SC/ST entrepreneurs.