NEW DELHI: Micro and small units in which 51 per cent shares are owned by SC/ST will be entitled to reservation under government procurement policy for MSME sector.
For the purpose of extending the benefit of procurement policy to the micro and small enterprises (MSE) owned by SC/ST entrepreneurs, the Micro, Small and medium Enterprises (MSME) ministry today came out with the clarification on the definition.
"Under the provision of...policy, definition of MSEs owned by SC/ST is clarified by the Ministry of MSME...In case of proprietary MSE, proprietor(s) shall be SC/ST; In case of partnership MSE, the SC/ST partners shall be holding at least 51 per cent shares in the unit. "In case of Private Limited companies, at least 51 per cent share shall be held by SC/ST promoters," an official statement said.
The Public Procurement Policy mandates every central ministries, departments and PSUs to buy 20 per cent of their total annual purchases value from from MSME. The policy also earmarked 4 per cent share out of this 20 per cent procurement from MSEs owned by SC/ST entrepreneurs.
The MSME sector contributes 8 percent to India's Gross Domestic Product (GDP) and 45 percent to manufactured output. The sector provides employment to over 8 crore people engaged in over 3.6 crore units, producing more than 6,000 products.