CPSEs procures goods & services of Rs 24226.51 crore from MSMEs in 2017-18

CPSEs has to procure 20% of annual purchases from the products or services produced or rendered by MSMEs

Annual procurement of goods & services from Micro, Small and Medium Enterprises (MSME) by the Central Public Sector Enterprise (CPSE) during 2017-18 stands at Rs 24226.51 crore in which the share of procurement from MSEs owned by SC/ST Entrepreneur is Rs 442.52 crore.

Ministry of MSME has taken several measures for effective implementation of the Public Procurement Policy. These include constitution of review committee to monitor the progress of implementation of Public Procurement Policy, launch of SC/ST hub to provide support to SC/ST Entrepreneurs, launch of MSME Sambandh portal to monitor the progress of procurement from MSEs including MSEs owned by SC/ST and women.

The Public Procurement Policy for Micro and Small Enterprises (MSME) has mandated that every Central Ministry/Department/PSU shall set an annual goal of minimum 20% of the total annual purchases from the products or services produced or rendered by MSMEs. However, the government recently revised the order making it compulsory for all CPSEs to procure 25% from MSMEs instead of 20% of their total purchases. Out of the total annual procurement from Micro and Small Enterprises, 3 per cent from within the target shall be earmarked for procurement from Micro and Small Enterprises owned by women. A sub-target of 4% out of annual procurement is earmarked for procurement from MSEs owned by SC/ST entrepreneurs.

Year<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

No. of CPSEs

Total Procurement (Rs in Crore)

Procurement from MSEs (Rs in Crore)

Procurement from MSEs owned by SC/ST Entrepreneur (Rs in Crore)

2014-15

133

131766.9

15300.57

59.37

2015-16

132

279167.2

12566.15

50.11

2016-17

142

245785.3

25329.44

400.87

2017-18

169

280785.5

24226.51

442.52

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