Govt purchases from MSMEs exceed minimum procurement limit again; here’s how many businesses benefitted

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Published: December 2, 2019 7:39:26 PM

Central Public Sector Enterprises (CPSE) have exceeded the minimum procurement threshold of 25 per cent goods and services from micro and small enterprises (MSE) under Public Procurement Policy.

28.96 per cent procurement worth Rs 17,720 crore was made by CPSEs benefiting 65,920 MSEs.

Central Public Sector Enterprises (CPSE) have exceeded the minimum procurement threshold of 25 per cent goods and services from micro and small enterprises (MSE) under Public Procurement Policy till November 27 in the current fiscal year, according to the data provided by MSME Minister Nitin Gadkari in Rajya Sabha on Monday. 28.96 per cent procurement worth Rs 17,720 crore was made by CPSEs benefiting 65,920 MSEs. The eight-month procurement percentage has already crossed FY19’s 26.31 per cent. However, the procurement amount from MSEs for FY19 was Rs 40,434 crore that benefitted 1.27 lakh MSEs.

The 25 per cent mandate by CPSEs, central ministries and departments from MSEs also include 4 per cent from MSEs owned by scheduled caste/scheduled tribe (SC/ST) entrepreneurs and 3 per cent from women-owned MSEs. In the current financial year so far, according to the Public Procure Policy monitoring portal MSME Sambandh, the procurement from SC/ST MSEs was 0.51 per cent at Rs 311 crore benefitting 2,579 such MSEs. For women-owned MSEs, the procurement stood at 0.41 per cent at Rs 253 crore benefiting 1,628 MSEs here. The total procurement from CPSEs including MSEs was worth Rs 61,196 crore till date.

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Government e-Marketplace (GeM) launched by the government in August 2016 for buying from organisations including MSEs had helped five central ministries save Rs 24.84 crore for the month of October 2019. GeM which has around 3 lakh sellers including 60,000 micro and small sellers (MSE) help save Rs 16.47 crore for Ministry of Electronics and Information Technology followed by Rs 7.74 crore for Ministry of Coal, savings for Ministry of Tourism stood at Rs 46.19 lakh, Rs 14.29 lakh for Ministry of New and Renewable Energy while Ministry of Drinking Water and Sanitation was able to save Rs 2.80 lakh, GeM tweeted on recently.

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