Ease of doing business for MSMEs: According to the government’s Public Procurement Policy for MSEs, every central government ministry, department and public sector undertaking is required to procure a minimum of 25 per cent of their total annual value of goods or services from MSEs.
Ease of doing business for MSMEs: Minister of State for Micro, Small and Medium Enterprises (MSMEs) Bhanu Pratap Singh Verma on Saturday chaired the CPSE (central public sector enterprise) Conclave under the National SC-ST Hub to interact with CPSEs on the issues faced in achieving the public procurement target set by the government in procuring goods and services from micro and small enterprises (MSEs) annually. The minister encouraged the efforts undertaken by CPSEs towards fulfilling the mandate of Public Procurement Policy and also urged all the CPSEs to proactively reach out to SC/ST and women entrepreneurs and provide them with required hand-holding support, said MSME Ministry in a statement.
According to the government’s Public Procurement Policy for MSEs, every central government ministry, department and public sector undertaking is required to procure a minimum of 25 per cent of their total annual value of goods or services from MSEs. In addition, 4 per cent of the total procurement of goods and services is mandated to be procured from MSEs owned by SC and ST entrepreneurs and 3 per cent from women entrepreneurs.
As per the data available on the public procurement monitoring portal MSME Sambandh, the MSE procurement share increased from 26.32 per cent amounting to Rs 40,399 crore in FY19 to 30.18 per cent in FY20 though the value declined marginally to Rs 39,665 crore. It further increased to 33.93 per cent worth Rs 42,586 crore in FY22 after dipping to 27.95 per cent, though still above the 25 per cent threshold, during FY21 amid Covid.
During the first half of the financial year 2022-23, procurement value increased by 59.5 per cent from the year-ago period. The total amount of public procurement by CPSEs as of October 14 FY22 stood at Rs 13,325 crore in comparison to Rs 21,256 crore as of October 9 in the current financial year.
However, CPSEs have been unable to meet the targets in SC-ST and women categories. During FY22, 0.77 per cent of procurement amounting to Rs 1,261 crore was made from SC/ST units and 1 per cent worth Rs 1,630 crore from women-led enterprises. In H1 FY23, 0.74 per cent procurement has been made amounting to Rs 480 crore from 2,877 SC/ST units while 0.81 per cent purchase amounting to Rs 521 crore from 2,984 women MSEs, data showed.
The CPSE conclave focussed on sensitizing, recognizing, and felicitating the CPSEs who have made efforts to achieve the targets of procurement from SC/ST and Women MSEs, the ministry said.