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Procurement of Goods and Services from MSMEs by PSEs 

Annual procurement of goods & services from Micro, Small and Medium Enterprises (MSME) by the Central Public Sector Enterprise (CPSE) during 2017-18 stands at Rs. 24226.51 crore in which the share of procurement from MSEs owned by SC/ST Entrepreneur is Rs. 442.52 crore.

The details of annual procurement by the CPSEs during the last four years, as per information provided by Department of Public Enterprises (DPE), are as under:


Year No. of CPSEs Total Procurement (Rs. in Crore) Procurement from MSEs

 (Rs. in Crore)

Procurement from MSEs owned by SC/ST Entrepreneur

(Rs. in Crore)

2014-15 133 131766.86 15300.57 59.37
2015-16 132 279167.15 12566.15 50.11
2016-17 142 245785.31 25329.44 400.87
2017-18 169 280785.49 24226.51 442.52


Ministry of MSME has taken several measures for effective implementation of the Public Procurement Policy. These include constitution of review committee to monitor the progress of implementation of Public Procurement Policy, launch of SC/ST hub to providesupport to SC/ST Entrepreneurs, launch of MSME Sambandh portal to monitor the progress of procurement from MSEs including MSEs owned by SC/ST and women.

The information was given by the Minister of State (Independent Charge) for MSME, Giriraj Singh, in Lok Sabha today.

The Public Procurement Policy for Micro and Small Enterprises (MSME) has mandated that every Central Ministry/Department/PSU shall set an annual goal of minimum 20 per cent of the total annual purchases from the products or services produced or rendered by MSEs. However, the government recently revised the order making it compulsory for all CPSEs to procure 25% from MSMEs instead of 20% of their total purchases.  Out of the total annual procurement from Micro and Small Enterprises, 3 per cent from within the   target shall be earmarked for procurement from Micro and Small Enterprises owned by women.A sub-target of 4% out of   annual procurement is earmarked for procurement from MSEs owned by SC/ST entrepreneurs.

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