Question : Public Procurement Policy for SMEs

(a) the details of Government’s Public Procurement Policy for Small and Medium Enterprises (SMEs) as per order issued on April 25, 2012 which stipulates that all Central Ministries and Central Public Sector Undertakings (CPSUs) should ensure at least 20% of procurement from SMEs and within this 4% should be from the Enterprises promoted by SCs/STs;

(b) if so, the total value of CPSUs procurement for the past three years and for the current year;

(c) the details of procurement from industries/enterprises promoted by SCs/STs;

(d) whether the Government has received any request/complaint from Dalit Chamber of Commerce and Industry in this regard and if so, the details thereof; and

(e) the steps taken by the Government to achieve the targets under above policy?

MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)

(a): The Government has notified Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 under MSMED Act. Under this policy, 25% of annual procurement by Central Ministries /Departments/Public Sector Enterprises (CPSEs) has to be made from Micro & Small enterprises. This includes 4% from MSEs owned by SC/STs and 3% from MSEs owned by Women entrepreneurs.

(b) & (c): As per information uploaded on Sambandh portal for 2017-18, 2018-19 & current year till 22nd July, 2019, the details of annual procurement of goods & services from MSEs including SC/ST by the Central Public Sector Enterprise (CPSE) are as under:

<pre>
Year No. of CPSEs (Reported) Total Procurement (Rs. in Crore) Procurement From MSEs
(Rs. in Crore) Procurement from MSEs owned by SC/ST Entrepreneur
(Rs. in Crore)
2017-18 170 114042.05 26357.46 544.72
2018-19 162 152620.40 40303.26 823.87
2019-20
(Till 22nd July, 2019) 77 22658.63 5631.38 100.38
</pre>

(d): The Government receives representations from various MSEs and Industry Associations from time to time and these are addressed in accordance with the provisions of the Policy.

(e): For effective monitoring of the implementation of Public Procurement Policy, MSME Sambandh portal has been launched.