(a) whether any step have been taken to encourage new entrepreneurs structurally and administratively under Micro, Small and Medium Enterprises (MSMEs);
(b) if so, the details of the new entrepreneurs registered since 2018, year and State-wise; and
(c) the details of the encouragement, structural and technical assistance to industries on construction and procurement benefits ?
MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)
(a): Yes Sir. The Government has notified composite criteria of classification of MSMEs based on investment in plant & machinery or equipment and turnover of MSMEs as structural change to facilitate existing entrepreneurs and new entrepreneurs.
(b): Details of MSMEs Registered under Udyog Aadhar Memorandum (UAM) since 2018 and MSMEs Registered under Udyam Registration (UR) since 01.07.2020 are annexed as Annexure-I and Annexure-II respectively.
(c): The Udyam registration Portal has the facility to link the registrant with the GeM platform to participate in Government’s mandatory procurement program. Ministry of MSME is making every attempt to encourage the MSMEs to get themselves onboarded on the GeM Portal. In addition, the portal also have a provision to link MSMEs to the TReDS portal for factoring of bills.
To promote domestic investment and usage of made in India products by the government, Public Procurement (Preference to Make in India) Order 2017 was revised on 16.09.2020. The salient features of the order are –
(i) For Government purchases of less than Rs. 200 crore, global tender enquiry shall not be issued.
(ii) Suppliers offering items with minimum 50% domestic value addition will get purchase preference over other suppliers in government procurement.
(iii) Suppliers offering items with less than 20% domestic value addition can’t participate in domestic/national bidding process.
(iv) Nodal Ministries/ Departments have been authorized to notify higher minimum local content requirement for Class-I/ Class-II local suppliers i.e. higher than 50/20%.
The General Financial Rules (GFRs) has also been modified so that any bidder having beneficial ownership / financial relationship with investments from countries sharing land border with India would now be eligible to bid, only after the bidder is registered after a rigorous scrutiny. This step has been taken keeping in mind national security and national requirement for such a bidder in all government procurements.
The Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 has been notified, the same being effective from 1st April, 2012 and has become mandatory w.e.f April 2015. The Policy was amended in November, 2018. The amended order 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.