‘Central PSUs not abiding by MSME procurement rules’

Aditi Nigam New Delhi | Updated on January 19, 2018 Published on February 05, 2016

Central government departments and Central Public Sector Undertakings (CPSUs) have made only 10 per cent purchases from medium, small and micro enterprises (MSMEs), against the mandatory requirement of 20 per cent.

Procurement from Scheduled Caste/Scheduled Tribe enterprises is worse, at 0.2 per cent, against the mandatory 4 per cent.

A review of the purchases made by CPSUs and government departments, done recently by the Prime Minister’s Office, “found that the share of MSME procurement is less than 10 per cent against a mandatory 20 per cent and that of SC/ST entrepreneurship share is less than 0.2 per cent against a mandatory 4 per cent,” the MSME Ministry said in a statement.

Following this, MSME Minister Kalraj Mishra, who also reviewed the policy, has directed the Secretary, MSME, to identify the top 50 CPSUs and organise a meeting so that these units can be “sensitised toward meeting the requirement of the public procurement policy of MSMEs”.

Published on February 05, 2016

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