Only 32 PSUs have complied with 20% procurement norm: Govt

Only 32 out of 146 PSUs have complied with the mandatory 20 per cent procurement of products and services required by them from micro and small enterprises till now, the government today said.
The government is looking at amending public procurement policy to incorporate provisions against PSUs who fail to meet the mandatory at least 20 per cent rocurement by April 2015.
"As far as procurement policy is concerned, it is true that several PSUs are not complying with the required procurement. Only 32 PSUs have complied with the 20 per cent mandatory procurement out of 146 PSUs.
According to the policy, (20 per cent procurement) it will be mandatory from April 2015. We are thinking of amending the policy to incorporate provisions against PSUs who do not comply with the mandatory procurement norm after April, 2015," MSME Minister Kalraj Mishra told reporters at the 100 days press conference here.

All public sector undertakings (PSUs), central government ministries and departments will have to procure at least 20 per cent of products and services required by them from micro and small enterprises (MSEs) from April next year.
The public procurement policy for micro and small enterprises has become effective from 1 April 2012. However, the provision of 20 per cent procurement of products produced and services rendered by MSEs will be mandatory from 1 April 2015 for central ministries/departments/PSUs.

According to data available with the 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 2011-12, 2012-13 and 2013-14, respectively. This shows a steep decline in procurement from MSEs by them in the last fiscal as compared to the preceding two years.

MSME sector contributes 8 per cent of GDP and accounts for around 40 per cent of the total exports and around 45 per cent of the manufacturing output.
As per the Fourth All India Census of the Micro, Small and Medium Enterprises, total number of Enterprises of the MSME sector is 361.76 lakh of which 15.64 are registered Enterprises. The sector provides employment to 805.24 lakh persons. MSME sector is the largest job provider after agriculture sector.