Question : Public Procurement Policy

(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?

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.