Under the public procurement policy of the government, these ministries have the highest procurement targets from MSEs for FY25.
The petroleum ministry and coal ministry are targeting to be the biggest buyers of goods and services from micro and small enterprises (MSEs) in the country in the current fiscal. Under the public procurement policy of the government, the two ministries have the highest procurement targets from MSEs for FY25, according to the official data.
Ministry of Petroleum and Natural Gas has targeted procurement worth Rs 11,669 crore from MSEs in FY25, down from Rs 14,630 crore in the previous fiscal, according to data from the public procurement monitoring portal MSME Sambandh.
However, the ministry’s actual procurement from MSEs in FY24 stood at Rs 23,973 crore, exceeding the target by a significant margin.
On the other hand, the Ministry of Coal this year has targeted the purchase of Rs 5,306 crore from MSEs in comparison to the Rs 4,231 crore target in FY24. The procurement made in the previous fiscal, however, was higher at Rs 5,063 crore.
For the uninitiated, the public procurement policy for MSEs mandates an overall procurement of a minimum 25 per cent of total annual purchases of products and/or services rendered by MSEs by the central ministries, government departments and central public sector undertakings (CPSUs).
The policy also has a specified sub-target of 4 per cent procurement from MSEs owned by SC-ST entrepreneurs and 3 per cent from MSEs owned by women entrepreneurs.
Power, heavy industries, and steel were other ministries with top MSE procurement targets of Rs 4579 crore, Rs 3006 crore and Rs 2991 crore respectively in the current fiscal, according to the data.
The top buyers of MSE products and services in FY24 were defence ministry (Rs 9,769 crore), power ministry (Rs 12,096 crore), steel ministry (Rs 4,959 crore), other than petroleum and coal ministries.
Importantly, the overall public procurement value from MSEs continues to grow year-on-year. It jumped from Rs 39,037 crore in FY20 to Rs 40,717 crore amid Covid during FY21 and peaked at Rs 80,298 crore in FY24, according to the data shared by Minister of State in the MSME Ministry Shobha Karandlaje in a written reply to a question in the Rajya Sabha on August 5, 2024.
