Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012


In exercise of the power conferred in section 11 of the Micro, Small and Medium Enterprises Development (MSMED) Act 2006, the Central Government notified the Public Procurement Policy in respect of procurement of goods and services, produced and provided Small Enterprises.

This order is titled as Public Procurement Policy for Micro and Small Enterprises (MSEs) order, 2012.

The order says that every Central Ministry or Department or Public Sector Undertaking shall set an annual goal of procurement from Micro and Small Enterprise from the financial year 2012-13 and onwards, with the objective of achieving an overall procurement of minimum of 20% of total annual purchase of products produced and service rendered by Micro and Small enterprise in a period of three years.


Annual goal of procurement also include sub contracts to Micro and Small Enterprise by Large Enterprise and consortia of Micro and Small Enterprise formed by National Small Industries Corporation.

After a period of three years i.e. from 1st April 2015, overall procurement goods of minimum of 20% shall be made mandatory.

In tender, participating Micro and Small Enterprise 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 from someone other than a Micro and Small Enterprise and such Micro and Small enterprise shall be allowed to supply up to 20% total tendered value. In case of more than one such Micro and Small Enterprise, the supply shall be shared proportionately (to tendered quantity).

In the light of above Procurement Policy order, the Kerala Government have issued an order for the same on 07/11/2013. [ GO(P)No.546/2013/Fin dated 07/11/2013 ].

The order says that all State Government Departments / Public Sector Undertakings / Local Self Governments / Development Authorities / Kerala Khadhi and Village Industries / KINFRA / Kerala State Road Transport Corporation / Kerala Water authority shall set an annual goal of procuring a minimum of 20% of their annual value of goods or services from Micro and Small Enterprise working within the State is mandatory with effect from 01/04/2015.


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