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Chennai Petroleum Corporation Ltd (CPCL) procured more than one-third of its non-crude supplies directly from MSE (micro and small enterprises) vendors during 2022-23, far exceeding the government mandate.
In FY23, at 38.96 per cent, procurements from MSE vendors outstripped the government’s 25 per cent target under the public procurement policy 2012. The sourcing share in FY23 was lower than the 51.83 per cent share in FY22, but was higher in terms of value.
CPCL’s procurements were valued at Rs 955.5 crore (excluding crude, gas, power, and licence fees) in FY23. Of these, procurements from MSEs (general, reserved SC/ST, and women) stood at Rs 372.25 crore. Procurements exclusively from reserved SC/ST MSEs stood at Rs 57.83 crore, or 6.05 per cent, which is much higher than the target of 4 per cent. However, at 0.22 per cent, procurement exclusively from women-owned MSEs was lower than the target of 3 per cent.
Also read:CPCL profit zooms to ₹3,534 crore in FY23
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Procurement through the GeM portal accounted for 57.57 per cent (Rs 550.07 crore) of the total procurements during 2022-23.
In FY22, CPCL’s procurements were valued at Rs 655 crore, with MSEs (general, reserved SC/ST, and women) accounting for Rs 340 crore.
The company prioritises local vendors for non-crude procurements. It participates regularly in vendor development programmes, in collaboration with the Ministry of Micro, Small, and Medium Enterprises, and National Small Industries Corporation.
“We believe that these programmes provide a platform for MSEs to showcase their products and services, interact with potential buyers, and explore procurement opportunities,” the company’s latest annual report stated.
Also read:CPCL achieves the highest-ever throughput of 11.3 MMTPA in FY23
Also, identifying and supporting SC/ST and women entrepreneurs is an important step towards promoting diversity and inclusivity in business. Barriers are lowered to ensure their entrepreneurial capabilities are met with growth and success, it added.
CPCL has earmarked 25 per cent of total procurements for MSEs in FY24. Of this, 4 per cent is earmarked for reserved SC/ST MSEs and 3 per cent for women-owned small enterprises.
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