Procurement Policy for MSMEs
The Public Procurement Policy for Micro and Small Enterprises (MSME) order 2012 has mandated Every Central Ministry/Department/PSU shall set an annual goal for procurement from the MSE sector at the beginning of the year, with the objective of achieving an overall procurement goal of minimum 20 per cent of the total annual purchases from the products or services produced or rendered by MSEs. Out of 20% target of annual procurement from MSEs, a sub-target of 4% (i.e., 20% out of 20%) will be earmarked for procurement from MSEs owned by SC/ST entrepreneurs.
The policy mandates that after a preparatory period of three years i.e.1st April, 2015, overall procurement goal of minimum 20% shall be made mandatory for all the Central Ministries/Departments/PSUs.
The Public Procurement Policy have no provision for foreign investors to make 30% purchase from MSME.
The Ministry of MINISTRY OF Micro, Small and Medium Enterprises (MSME) is implementing many Plan Schemes viz., National Manufacturing competitive scheme, Cluster Development Programmes, Credit Linked Capital Subsidy scheme for Upgradation, ISO Certification reimbursement scheme and Bar Code scheme etc. to make micro, small and medium enterprises of the country capable of producing their products of international standard.
This information was given by the Union Minister of Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Lok Sabha here today.
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