Govt kicks off FY22 procurement from MSEs with purchases over 25% of its annual target

The federal government had final month introduced a devoted portal, efficient July 1, 2021, for sellers to file grievances for alleged violation of the Public Procurement (Choice to Make in India) Order, 2017. (Consultant picture)

Central public sector enterprises (CPSEs) throughout ministries have kicked off FY22 procurement of products from micro and small enterprises (MSEs) with a cumulative 27.65 per cent share (for April, Could, and the primary week of June) of their general buy. The annual procurement goal for presidency patrons from MSEs is 25 per cent of their complete buy. The targetted procurement included a 4 per cent goal from MSEs owned by SC/ST entrepreneurs and a 3 per cent goal from women-owned MSEs. In response to the information from the MSME Ministry’s public procurement coverage monitoring portal MSME Sambandh, 35 CPSEs have made procurement value Rs 2,884 crore as of June 6, 2021, of which Rs 797.65 crore (27.65 per cent) value procurement was constructed from 2,052 MSEs. The share of FY21 and FY20 procurement from MSEs was 31 per cent and 30 per cent respectively.

Ministries with the very best procurement from MSEs, regardless of their general annual goal, have been Ministry of Petroleum and Pure Fuel (Rs 382 crore), Ministry of Energy (Rs 148 crore), Ministry of Mines (Rs 78 crore), Ministry of Heavy Industries and Public Enterprises (Rs 77 crore), and Ministry of Metal (Rs 65 crore), and so forth., the information confirmed. Procurement from SC/ST MSEs was value Rs 27.95 crore (0.97 per cent of focused 4 per cent) from 45 enterprises and Rs 65.56 crore (2.27 per cent of focused 3 per cent) from 113 women-owned MSEs, to this point. In reality, FY18 onwards knowledge from the monitoring portal confirmed that procurement from SCT/ST and girls MSEs have remained under their targets to this point.

Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises

Importantly, FY21 procurement from MSEs had witnessed a marginal decline for the second consecutive yr to Rs 39,538 crore from Rs 39,632 crore in FY20 and Rs 40,399 crore in FY19, Monetary Categorical On-line had reported final month. Regardless of that, the procurement because the previous three monetary years (FY19-21) has been over 25 per cent annual goal — 26 per cent for FY19, 30 per cent for FY20, and 32 per cent for FY21.

The federal government had final month introduced a devoted portal, efficient July 1, 2021, for sellers to file grievances for alleged violation of the Public Procurement (Choice to Make in India) Order, 2017. The portal by the Division for Promotion of Business and Inside Commerce (DPIIT) will refer grievances of suppliers and bidders to involved procuring entities together with ministries and departments “on real-time foundation for examination, vital corrective motion and feedback, if any,” DPIIT had stated in an workplace memorandum.