PSUs Will Have To Procure 20% From MSEs: Govt | SupportBiz

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PSUs Will Have To Procure 20% From MSEs: Govt

 
Tags: PSU
The Public Procurement Policy for micro and small enterprises (MSEs) has become effective from April 1, 2012.

New Delhi: All public sector undertakings (PSUs), central government ministries and departments will have to procure at least 20 percent of the products and services required by them from micro and small enterprises from April next year, the Parliament was informed on Tuesday.

"The provision of 20 per cent procurement of products produced and services rendered by MSEs will be mandatory from April 1, 2015 for Central Ministries/Departments/PSUs," MSME Minister Kalraj Mishra said in a written reply to Rajya Sabha.

As per the data available with the micro, small and medium enterprises (MSME) Ministry, procurement of approximately Rs 14,442 crore, Rs 12,931 crore and Rs 3,799 crore was made from MSEs by Central Ministries/ Departments/ PSUs in the year 2011-12, 2012-13 and 2013-14 respectively.

This shows a steep decline in procurement from MSEs by them in the previous fiscal as compared to the preceding two years.