The government has tweaked the provisions of the procurement policy, according to which now the Central government ministries and public sector undertakings (PSUs) would be required to procure “at least” 20 per cent of their annual value of goods or services from micro and small enterprises (MSEs). The change has been made in the provision 6 of the Policy wherein the phrase 'up to' has been substituted with 'at least'. With the new norms SMEs are now eligible to supply “at least” 20 per cent of the requirement at the lowest quoted price in a bidding.
According to the earlier provision 6 of the Policy it is mentioned that in tender, participating Micro and Small Enterprises quoting price within price band of L1+15 percent shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price from someone other than a Micro and Small Enterprise and such Micro and Small Enterprise shall be allowed to supply “up to” 20 per cent of total tender value.
The revised Provision 6 of the Policy should be read as in tender, participating Micro and Small Enterprises quoting price within price band of L1+15 percent shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price from someone other than a Micro and Small Enterprise and such Micro and Small Enterprise shall be allowed to supply “at least” 20 per cent of total tendered value.
Government of India had introduced a Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 which is notified under MSMED Act 2006. Under the Policy every Central Government Ministries, Departments and Public Sector Undertakings shall procure minimum of 20 per cent of their total annual value of goods or services from Micro and Small Enterprises.