Public procurement from MSMEs: Procurement of goods and services from micro and small enterprises (MSEs) by central public sector enterprises (CPSEs) has recorded a 16.8 per cent growth in value in the financial year 2022-23 from FY22. According to the data shared by Bhanu Pratap Verma, Minister of State for Micro, small and medium enterprises in a written reply to a question in the Lok Sabha, 150 CPSEs made procurement worth Rs 62,463 crore in FY23 in comparison to Rs 53,468 crore procurement from 150 CPSEs in FY22.
While FY22 MSE procurement was 32.5 per cent of the overall Rs 1.64 lakh crore procurement made by CPSEs, the FY23 share increased to 35.6 per cent out of the total procurement of Rs 1.75 lakh crore. Importantly, FY23 procurement was the highest so far.
As per the data shared, the MSE procurement stood at Rs 40,399 crore in 2018-19 and grew by 54.6 per cent to FY23.
On the other hand, procurement from micro and small enterprises owned by the scheduled castes and scheduled tribes also increased from Rs 824.71 crore in 2018-19 to Rs 1468 crore in 2022-23, registering 78 per cent growth. However, the total procurement from SC/ST-owned MSEs remained below 1 per cent of the total procurement expenditure by the government.
The number of MSEs and SC-ST-owned MSEs benefitting from procurement from FY19 till FY23 stood at 9.19 lakh and 38,289, respectively.
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Importantly, CPSEs’ share of procurement from micro and small enterprises also increased from 26 per cent in FY19 to 35.6 per cent in FY23. According to the procurement guidelines, 25 per cent of the annual procurement made by the central ministries or departments has to be made from MSEs. Out of this, four per cent has to be from SC-ST MSEs and 3 per cent from women-owned MSEs.