Consider the following statements regarding the Public Procurement Policy for Micro and Small Enterp...........

Economic Affairs Small Scale Industries

Consider the following statements regarding the Public Procurement Policy for Micro and Small Enterprises (MSEs)-

1. Every Central Ministry /Department / PSUs shall set an annual target for 25% procurement from MSE Sector.

2. A sub-target of 4% out of 25% target of annual procurement earmarked for procurement from MSEs owned by SC/ST entrepreneurs.

Which of the above statements is/are correct?

Choose the correct answer using the codes below:

Only 1

Only 2

Both 1 and 2

Neither 1 nor 2

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Explanation:

Public Procurement Policy for MSEs Order, 2018 has been notified under section 11 of MSMED Act, 2006. The Policy is effective from 1st April 2019 (Gazette notification on 9 November 2018).

The objective of Policy is promotion and development of Micro and Small Enterprises by supporting them in marketing of products produced and services rendered by them. However, the policy rests upon core principle of competitiveness, adhering to sound procurement practices and execution of supplies in accordance with a system which is fair, equitable, transparent, competitive and cost effective.

Salient features of the Policy:

Every Central Ministry /Department / PSUs shall set an annual target for 25% procurement from MSE Sector.
A sub-target of 4% out of 25% target of annual procurement earmarked for procurement from MSEs owned by SC/ST entrepreneurs.
Overall procurement goal of minimum 25% has become mandatory from 1st April 2015.
Special provision for Micro and Small Enterprise owned by women. Out of the total annual
procurement from Micro and Small Enterprises, 3 per cent from within the 25 per cent target shall be
earmarked for procurement from Micro and Small Enterprises owned by women.