Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012
- Public Procurement Policy for MSEs Order, 2012 has been notified under section 11
of MSMED Act, 2006.
- The Policy is effective from 1st April 2012 (Gazette notification on 26th March
- The objective of Policy is promotion and development of Micro and Small Enterprises
by supporting them in marketing of products produced and services rendered by them.
However, the policy rests upon core principle of competitiveness, adhering to sound
procurement practices and execution of supplies in accordance with a system which
is fair, equitable, transparent, competitive and cost effective.
Salient features of the Policy:
- Every Central Ministry /Department / PSUs shall set an annual target for 20% procurement
from MSE Sector.
- A sub-target of 4% out of 20% target of annual procurement earmarked for procurement
from MSEs owned by SC/ST entrepreneurs.
- Overall procurement goal of minimum 20% has become mandatory from 1st April 2015.
- Tender sets free of cost and exemption from payment of earnest money to registered
- MSEs quoting price within price band L-1 + 15%, when L1 is from someone other than
MSE, shall be allowed to supply at least 20% of tendered value at L-1 subject to
lowering of price by MSEs to L-1.
- 358 items are reserved for exclusive procurement from MSEs.
- Ministry /Department/CPSUs shall prepare their annual procurement plan to be uploaded
on their official website.
- For enhancing participation of MSEs in government procurement, Ministry /Department/CPSUs
shall conduct Vendor Development Programmes or Buyer Seller Meets for MSEs especially
for SC/ST entrepreneurs.
Universe of the Policy:
- Central Departments (46)
- Central Ministries (51)
- CPSUs (277) ( out of 277 CPSUs, 44 are Sick/Closed)
- All MSEs having registration as per provisions of the Policy i.e. registration with
District Industries Centre (DIC) or Khadi and Village Industries Commission (KVIC)
or Khadi and Industries Board (KVIB) or Coir Board or National Small Industries
Commission (NSIC) or directorate of Handicrafts and Handlooms or Udyog Aadhaar Memorandum
or any other body specified by Ministry of MSME.
Details Procurement reported by CPSUs
Total Annual Procurement ( in Crore)
Total procurement from MSEs (including MSEs owned by SC/ST) ( in Crore)
Total procurement from MSEs owned by SC/ST Only ( in Crore)
Total number of vendor development programmes for MSEs conducted by CPSU
Graph for Procruement Data of CPSUs
Last updated date : 21/12/2016