Less than half of PSUs following MSME procurement norms

Less than half of the PSUs are complying with the mandatory 20 per cent procurement of products and services from micro and small enterprises, a review of the policy by MSME Minister Kalraj Mishra has found.
Union Minister Kalraj Mishra today chaired a review meeting on the public procurement policy by PSUs.
The review meeting follows the Prime Minister's Office taking stock of whether the PSUs were meeting the mandatory procurement norms, sources told PTI.
"Presently, less than half of the 146 public sector undertakings (PSUs) are complying with the mandatory 20 per cent procurement of products and services required by them from micro and small enterprises. The sourcing from SC/ST entrepreneurs is also much less than the mandatory 4 per cent prescribed for PSUs," a senior official said.

"The Minister directed the MSME Secretary and other senior officials to call a meeting of the top 30-50 PSUs at the earliest to sensitise them towards meeting the public procurement policy norms," the official added.
From April last year, all PSUs, Central Government ministries and departments have been directed to procure at least 20 per cent of products and services required by them from micro and small enterprises (MSEs).