1. law, govt and politics
2. government

FOREWORD
MSME sector which is the back-bone of the country’s economy is facing a stiff competition from
large units as well as multinationals. To provide market support for MSME sector in the Government
Purchase Programme Ministry of Micro, Small & Medium Enterprises, Government of India brought
forward the Public Procurement Policy
2012. This policy mandates the Central Ministries/
Department, Central Public Sector Undertakings to procure 20% of their annual procurement from
Micro and Small Enterprises.
–
To percolate Public Procurement Policy amongst Central Ministries/Department, CPSUs
(Buyers) and Micro, Small Enterprises (Vendors) MSME Development Institute, New Delhi in
association with National Thermal Power Corporation Ltd. (NTPC), Badarpur, National Hydroelectric
Power Corporation Ltd. (NHPCL), Faridabad, National Small Industries Corporation Ltd. (NSIC),
Faridabad Industrial Council of Minorities (Regd.), Faridabad and Sarurpur Industries Association
(Regd.), Faridabad organised a National Level Vendor Development Programme cum Industrial
Exhibition: MSME EXPO 2015 on 24 th & 25th March, 2015 at Saroj Vatika, Sohna Road, Faridabad.
This event will also provide a common platform for the buyers & sellers for mutual business dialogues
and MSEs will get exposure for expansion of their market base by exploring new marketing avenues in
Government Ministries/Departments and CPSUs.
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In this event about 40 numbers of Micro & Small Enterprises (MSEs) participated by way of
exhibiting their products or services. During Technical Session held, the representatives of Public
Sector Undertaking highlighted about the store items procured by them and registration procedure. The
schemes of the Ministry to build MSEs competitive with large enterprise were presented by officers of
our Institute.
I wish a great success to all MSEs & CPSUs participated in the event and thanks to the associates
NTPC, NHPC Ltd., NSIC, Faridabad Industrial Council of Minorities and Sarurpur Industries
Association for cooperating with us in organizing the event successfully. I also thank all officers &
staff members of this Institute for their remarkable contribution to make this event a grand success.
(Suresh Yadavendra)
Director
INDEX
Sl. No.
Page No.
1.
Report of National Vendor Development Programme cum Industrial
Exhibition
1
2.
List of Participants in National Vendor Development Programme
6
3.
Public Procurement Policy—2012: Gazette Notification
11
4.
FAQs on Public Procurement Policy for MSEs
20
5.
Schemes of Ministry of MSME for MSEs
23
MSME EXPO-2015: National Vendor Development Programme
Report of National Level Vendor Development Programme
on 24th & 25th March, 2015 at Saroj Vatika, Sohna Road, Faridabad
MSME-DI, New Delhi in association with National Thermal Power
Corporation Ltd. (NTPC), Badarpur, National Hydroelectric Power
Corporation Ltd. (NHPCL), Faridabad, National Small Industries Corporation
Ltd. (NSIC), Faridabad Industrial Council of Minorities (Regd.), Faridabad and
Sarurpur Industries Association (Regd.), Faridabad organised a National Level
Vendor Development Programme cum Industrial Exhibition: MSME EXPO—
2015 on 24th & 25th March, 2015 at Saroj Vatika, Sohna Road, Faridabad. The
main objective of this programme was to sensitize/create awareness about
Public Procurement Policy, 2012 and to facilitate B2B meeting between MSE
vendors and CPSU buyers.
Shri V. M. Jha, Dy. Director, MSME-DI, New Delhi welcomed the
dignitaries and the gathering during the inaugural function of the two day
National Level Vendor Development Programme cum Industrial Exhibition. In
his address he briefed on the theme of the event and the purpose of organising
such event. For the benefit of the gathering Shri Jha explained in brief about the
Public Procurement Policy – 2012. He also mentioned that in the present
globalized market scenario MSEs has to be competitive in terms of quality, cost
& delivery to achieve better market share in their respective businesses. Shri Jha
expressed that event of such nature provides opportunity to the MSEs to
showcase their capabilities, there by they could achieve new business avenues.
Shri Manish Jain, AGM, NTPC, Badarpur in his address mentioned that
the event organised by MSME-DI, New Delhi provide a platform for NTPC to
interface with business partners from Micro & Small Enterprises. He mentioned
that any issues or clarification can be discussed one to one during the two day
event there by obstacles in getting registered with NTPC if any can be
eliminated.
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MSME—Development Institute, New Delhi
Capt. G. R. Sarna, President, Sarurpur Industries Association (Regd.),
Faridabad expressed his gratitude for organising the event in the Faridabad
region and he also appreciated the effort put by the various CPSUs &
Government Departments to participate in the event. Capt. Sarna mentioned
that in the present scenario the biggest fight is on the commercial front due to
globalization, so MSEs find it tough to market their products/services. He
requested the MSE entrepreneurs to introspect and find ways to cut down cost
in their respective business. He also said that quality & pricing should be good
& competitive so that MSEs could beat anybody in global market. Capt. Sarna
also mentioned that most of the MSEs in his area are not regularized and he
requested the Government Officials presents to remove the obstacles present in
regularizing them.
Shri Suresh Yadavendra, Director, MSME-DI, New Delhi in his address
appreciated the effort put by the MSEs in putting up their stall and exhibiting
their products/services in a very short notice. He mentioned that Ministry of
MSME in exercise of the powers conferred in section 11 of MSME Development
Act 2006 brought forward Public Procurement Policy for MSEs with effect from
1st April, 2012. Director said that Vendor Development Programmes of
National as well as State level are being organised to sensitize the Public
Procurement Policy amongst its stakeholders and provide a platform to have
business interaction. Shri Suresh Yadavendra also briefed on the National
Manufacturing Competitiveness Programme Scheme of the Ministry and its
various components and requested the MSE representatives to utilize the
benefit of the scheme and thereby they could compete with the large industries
and multi national companies. Director also requested the MSE entrepreneurs
to be innovative to grab better market opportunities.
Shri A K Malhotra, General Manager, NHPC Ltd. in his inaugural address
mentioned that Government of India, Ministry of MSME brought Public
Procurement Policy to provide adequate market share to MSE sector in the
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MSME EXPO-2015: National Vendor Development Programme
purchases by Central Government Ministries/Department and Central Public
Sector Undertakings. He also said that majority of the procurement presently
are done through e-procurement and e-tendering to bring in transparency.
Shri Malhotra mentioned that in NHPC Ltd. majority of the procurement is
done from large industries for items viz. large transformers and other power
equipments nevertheless a huge number of small items are being procured
from MSEs. He said that presently procurement value of Rs. 10,00,000/- &
above are done through e-procurement and as per plan this will be reduced to
Rs. 5,00,000/- from 1st April, 2015 and further to Rs. 2,00,000/- from 1st April,
2016. Shri Malhotra requested the MSEs to take part in the
e-procurement
of NHPC Ltd. and avail the market opportunity. He appreciated the effort put
by MSME—Development Institute, New Delhi in organising the event and
providing a wonderful platform.
The Inaugural function concluded with the vote of thanks proposed by
Md. Zafar Khan Saifi, President, FICOM. Shri A K Malhotra, General Manager,
NHPC Ltd. inaugurated the Industrial Exhibition and along with other
dignitaries he visited the stall and had interaction with them.
In the two day industrial exhibition 35 Micro & Small Enterprises, 2 Banks
and 2 CPSUs/Government Department put up their stalls and exhibited the
products manufactured/services rendered. Also during the two days event
technical seminar was conducted where in presentation on Public Procurement
Policy-2012 and various other schemes of Ministry of MSME including National
Manufacturing Competitiveness Programme were done by senior officials of
MSME-DI, New Delhi. Representative of National Small Industries Corporation
(NSIC) gave presentations on the role of NSIC in Government Purchase
Programme and various other assistance provided by NSIC for the promotion
of Micro & Small Enterprises. Procurement procedure and items of
procurement of National Thermal Power Corporation Ltd., National Hydro
Power Corporation Ltd., Association of State Road Transport Undertakings
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MSME—Development Institute, New Delhi
were deliberated by
senior representatives
from these organisations.
Presentations were also made by Small Industries Development Bank of
India (SIDBI) on their various financial assistance provided to MSMEs and by
District Industries Centre, Faridabad on their role.
During the Valedictory function Shri Suresh Yadavendra, Director, MSME
Development Institute, New Delhi presented participation certificates to all the
participants. In his address he thanked the MSEs for participating in the event
by exhibiting their products/services bearing the scorching heat. He said that
MSEs has to put extra efforts to cut down cost, improve quality and be
innovative to be competitive. The programme concluded with the vote of
thanks by Shri Brajendra Kumar, Asstt. Director, MSME-DI, New Delhi.
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MSME EXPO-2015: National Vendor Development Programme
-5-
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Mr. Mehndiratta
M/s. Easy Deal India
RZ-74, Sagarpur, Palam Road,
New Delhi-46
-6Ms. Rakhi Sinha
Mr. Vikas Sahdev
M/s. Acquaware Systems LLP
1st Floor, Plot No. 4, Block-A,
Sector-23, Dwarka, New Delhi
M/s. Pioneer Town Planners
(P) Ltd.
830, Sector-21A, Faridabad121002 (HR)
M/s. S. B. R. Pressing & Engg. Mr. Raj Gupta
Udyog
Plot NO.8, Friends Industrial
Complex, Nagla Gujran, Sohna
Road, Saroorpur Industrial
Area, Faradabad
Mr. Gaurav Gupta
M/s. Canara Bank
SCO-138, FF, Sector-21C,
Faridabad-121001
M/s. Bhartiya Industrial
Mr. Sajid
Equipments
E-17, Sanjay Colony, Sector-23,
Opp. Atul Factory, Faridabad
Mr. J. D. Das
Contact Person
M/s. A-1 Gauges
Plot No. E-12, Sanjay Colony,
Sector-23, N.I.T., Faridabad
Name & Address of the Unit
sbrpressing@gmail.com
+91-9891685999
vikassahdev@shrijigroup.co
+91-9910988880
wecare@purenesswater.com
+91-9211727031
gaurav.gupta@canarabank.com
+91-8130583936
bie_lucky@yahoo.co.in
+91-9899578660
mayankmehndiratta88@gmail.com
+91-8800517591
jda1gauge@yahoo.com
+91-9899090501
Contact Email /Number
Desert Cooler, Exuast Fan, Motor
Town Planner
RO Water purifier, Domestic & Commercial
WTP, STP, Rain water harvesting & Annual
maintenance & contracts
MSME Loans
Material handling equipments
Healthcare Products
Precision tools & Gauges in steel & carbide
special gauge, jig fixture
Products
List of Participants in National Vendor Development Programme on 24th & 25th March, 2015:
MSME—Development Institute, New Delhi
Mr. S. R. Sarup
Mr. Deepak Sahani
M/s. CMI Limited
Plot No. 71 & 82, Sector-6,
Faridabad-121006
M/s. Light Lift India Pvt. Ltd.
Plot No. 52, Sector, 27-A,
Faridabad-121003
-7jangindenterprises@gmail.com
+91-9810888940
M/s. Jangind Enterprises
B-70/C, Phase-1, Mayapuri
Industrial Area, New Delhi
+91-9910071001
sidharthnarula@neelkamalgaskets.com Washers of all types
M/s. Neelkamal Enterprises
Mr. Sidhartha
Pvt. Ltd.
Narula
Plot No. 70, Lane 5W, Sarurpur
Indl. Area, Ballabhgarh-Sohna
Road, Faridabad
Boom Left, Scissor Left, Scaffolding,
Shuttering, Suspended Platform
daman_lall@yahoo.com
loyalscaffolding@gmail.com
+91-9999621189
Health Items
Budgeted homes
Material handling equipments, EOT Crane/
HOT Crane, Hoist, Goods Lift, Hand Pallet
Truck, Chain Pulley Block
All types of Cables
IR Heater, Battery charger & tester,
Thyristor, Power Controller, LED Lights,
Energy Monitoring System
Pressure gauge,& Temperatue Gauge and
accessories
Products
M/s. Loyal Scaffolding Pvt. Ltd. Mr. Damandeep
B-111, Mayapuri Industrial
Singh
Area, Ph-I, New Delhi-110064
Mr. Praveen Kumar
Sharma
km@rudrabuilders.com
+91-9582105178
M/s. Rudra Builders &
Mr. Ketan Marwah
Projects Pvt. Ltd.
A-66, Sector-63, Noida-201301
exports@lightlift.com
info@lightlift.com
+91-9873795687
sarup@cmilimited.in
+91-9810129440
jpjain@arvindproduct.com
+91-9811004152
Mr. J. P. Jain
M/s. Autosafe Electronics
30/5, Wearwell Cycle
Complex, Industrial Area, NIT,
Faridabad-121001
Contact Email /Number
h.gurunorth@gmail.com
+91-9873909744
Contact Person
M/s. H. Guru Instruments
Ms. Shibani Hazra
North India (P) Ltd.
59/2/20, Industrial Area,
Sahibababd, Site-IV, Ghaziabad
Name & Address of the Unit
MSME EXPO-2015: National Vendor Development Programme
.
vaibhav@vintageswitchgear.in
+91-9871177044
M/s. VINTAGE Switchgear
Mr. Vaibhav Bansal
Atali Road, Village Kaurali,
Near Tigaon Village, Faridabad
-8Mr. Anjani Kumar
M/s. Alien Energy Pvt. Ltd.
A16/6, Om Sai Complex, Link
Road, Site-IV, Industrial Area,
Sahibabad, Ghaziabad, UP
M/s. Holosafe Security Labels Ms. Manjula Mishra contact@holosafe.co.in
Pvt. Ltd.
+91-9811324158
F-60, Site-B, Indl. Area,
Surajpur, Greater Noida
anjani@alienenergy.in
enquiry@alienenergy.in
+91-9958286100
Holographic Products
LED Lights, Solar Lights
Roller, Wire Mesh, Plates
Mr. Shariq Mirza
M/s. S. H. Enterprises
Plot No-11, Frinds Complex,
Sarurpur Ind. Area, Sohna
Baaabgarh Road, Faridabad
shenterprises12@gmail.com
+91-8377832882
AO size (Large Format) Scanner, Plotters,
Inkjet MFS
Mr. Deepak Khanna ridelhi@reprographicsindia.co.in
+91-9837045554
M/s. Reprographics India
604, Siddhartha Building, 96,
Nehru Place, New Delhi
LT Panels, Cable Tray, DG Synchronization,
APFC Panels, Automation & Drive Panels
Investment Castings
Gali No. W-7, Plot No. 3,
Sarurpur Industrial Area,
Sohna Road, Ballabhgarh,
Faridabad, Haryana
micblb@yahoo.co.in
+91-9811819781
Products
M/s. MARC Investment Castings Mr. Vinod Bansal
Contact Email /Number
Indoor & Outdoor LED Display
Contact Person
M/s. Newtech Video Systems Mr. Gaurav Khurana gauravkhurana1@rediffmail.com
Khasra No. 1220, Rithala
+91-9810103697
Rohini, Delhi-110085
Name & Address of the Unit
MSME—Development Institute, New Delhi
-9-
saifiindl@sify.com
+91-9810928781
info@petplastindia.com
+91-8130288331
M/s. Saifi Industrial Co.
Mr. Zafar Khan
F-40, Sanjay Colony, Sector-23,
Sohna Road, Faridabad
Mr. Amit Kumar
Mr. Hisamuddin
Mr. Dashrath
Sharma
M/s. Pet Plast India Inc.
Plot No.8A, Frinds Complex,
Sarurpur Ind. Area, Sohna
Baaabgarh Road, Faridabad
M/s. Fiza Engineering Works
53/17, Jeevan Nagar,
Part-II, Kabari Market, Old
Maszid, Faridabad.
M/s. Sheetal Engineers
Plot No. 12, Near Mandir &
Gurudwara Saroorpur
Industrial Area, Sohna Road,
Faridabad - 121 001
+91-9810053469
+91-129-4013469
fizaengineering@gmail.com
+91-9213761207
+91-9873883100
M/s. Shiv Shakti Enterprises
Mr. Rakesh Sharma
Plot No-25, Galli No-6, Sundar
Chowk, Sarurpur Industrial
Area, Faridabad
Mr. Mohd. Naushad naushadperfect@yahoo.co.in
+91-9716024580
M/s. New Tech. Industries
G-294, S.G.M. Nagar, N.I.T.
Faridabad.
Contact Email /Number
Mr. Mohammad Arif asm_engineers@yahoo.co.in
+91-9810272557
Contact Person
M/s. A. S. M. Engineers &
Fabricators
Plot No.9, Road No.4,
Saroorpur Industrial Area,
Faridabad.
Name & Address of the Unit
Hydraulic Fixtures and Engineering
Components Fixtures
Steel Pipes, Job Works
Machine for Bottle
Electric Panel
Boiler Spares, Boiler Refractories
Conveyors, All Parts
Macheniory Fabrication
Products
MSME EXPO-2015: National Vendor Development Programme
.
Mr. Lalit Panday
Mr. Javed Saifi
Mr. Tashmeet Singh sukhchaingears@live.com
+91-9990266016
M/s. Vaishali Welding
Technology Pvt. Ltd.
Plot No5, Jeevan Nagar-II,
Opp. Lal Kothi, Sohna Road,
Faridabad
M/s. S. K. Forge
E-75, Air Force Road, Dabua
Colony, Faridabad
M/s. Sukhchain Gears
21/4, Mathura Road,
Ballabgarh, Haryana
- 10 info@webtechengg.com
+91-9871979733
jnanajyothifbd@gmail.com
+91-9953028357
M/s. Webtech Engineering (P) Mr. Ram Lalit Singh
Ltd.
Plot No. 20, Sec.-25, Faridabad
M/s. Syndicate Bank
Kothi No.911, Sector 15A,
Faridabad
Mr. R. C. Bhim Rao
director@weldarcindia.com
+91-9811100410
M/s. Mansoori Weldarc India Mr. M.S. Mansoori
Pvt. Ltd.
23/7, Mathura Road,
Ballabgarh, Faridabad
+91-9911391714
vaishaliwelding@yahoo.in
+91-9818847702
Products
Automobile Locks
Financial Support
Solar Equipments
All Type of Welding Machine
All Type of Gears
Sheet Metal & Forging
MIG, TIG, ARC Welding Machine
hemantdeshwal.cosmic@growthinfi Flats/Plots
nity.in
+91-7840096605
Mr. Hemant
Deshwal
M/s. Cosmic Structures Ltd.
9th Floor, Hotel Le Meridien
Commercial Tower, Janpath,
New Delhi-110001.
+91-9312270148
Contact Email /Number
Mr. R. A. Saifi
Contact Person
M/s. Auto Click Systems
E-5, S.G.M. Nagar, Faridabad
Name & Address of the Unit
MSME—Development Institute, New Delhi
CANARA BANK’S COMMITMENT TO MSME SECTOR
OUR SUPPORT TO MAKE YOUR DREAMS OPERATIONAL
CONTACT DETAILS:
SME SULABH, PLOT NO 303, UDYOG VIHAR PHASE II, GURGAON 122015
0124-2657537
smecogrgon@canarabank.com
SME SULABH, SCO 138, FF, SECTOR 21C, FARIDABAD (HARYANA) – 121001
0129-2437921
cb3936@canarabank.com
1800 425 1800
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MSME EXPO-2015: National Vendor Development Programme
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MSME EXPO-2015: National Vendor Development Programme
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MSME EXPO-2015: National Vendor Development Programme
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MSME EXPO-2015: National Vendor Development Programme
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MSME EXPO-2015: National Vendor Development Programme
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MSME—Development Institute, New Delhi
FREQUENTLY ASKED QUESTIONS
ON PUBLIC PROCUREMENT POLICY FOR MSEs
Q. No. 1: What is the share of procurement from MSEs out of the total procurement
made by Central Government Ministries / Departments / Public Sector Undertakings?
Ans. Under Public Procurement Policy for MSEs, a minimum 20 per cent share out of the total
procurement by Central Government Ministries / Departments / Public Sector Undertakings are to be
made from MSEs.
Q. No. 2: Whether there is any reservation for MSEs owned by SC/ST entrepreneurs?
Ans. Yes, out of 20% target of annual procurement from MSEs, a sub-target of 4% is earmarked for
procurement from MSEs owned by Scheduled Caste (SC) / Scheduled Tribe (ST) entrepreneurs.
However, in event of failure of such MSEs to participate in tender process or meet tender
requirements and L1 price, 4% sub-target for procurement earmarked for MSEs owned by SC / ST
entrepreneurs will be met from other MSEs.
Q. No. 3: Who is eligible for availing benefits under the Public Procurement Policy?
Ans.. The MSEs those are registered with District Industries Centers (DICs) / Khadi & Village
Industries Commission (KVIC) / Khadi & Village Industries Board (KVIB) / Coir Board / NSIC /
Directorate of Handicrafts and Handloom or any other body specified by Ministry of Micro, Small &
Medium Enterprises (MoMSME) are eligible for availing benefits under the Public Procurement
Policy.
Q. No. 4: What is the date of implementation of this Policy ?
Ans. The policy is applicable with effect from 1.4.2012.
Q. No. 5: Whether Policy is transparent, competitive and cost effective?
Ans. The Policy rests upon core principles of competitiveness, adhering to sound procurement
practices and execution of orders for supply of goods / services in accordance with a system which is
fair, equitable, transparent, competitive and cost effective.
Q. No. 6: Whether the Policy is implemented in parts or fully from its inception?
Ans. Every Central Ministry / Department / PSU has to set an annual goal for procurement from
MSEs at the beginning of every financial year, with the objective of achieving an overall procurement
of minimum 20 per cent of total annual purchases of products produced / services rendered by MSEs
in a period of three years. After 3 years, i.e. from 1.4. 2015, overall procurement goal of minimum 20%
shall be made mandatory.
Q. No. 7: Whether there is any monitoring system for assessing the Government
procurement from MSEs?
Ans. Data on Government procurements from MSEs is vital for strengthening the Policy. Towards
this, every Central Ministry / Department / PSU is to report goals set with respect to procurement to
be met from MSEs and achievement made thereto in their respective Annual Reports.
Q. No. 8: Whether there is price match making facility for procurement from MSEs over
large scale?
Ans. In tender, participating MSEs quoting price within band of L1+15% shall also be allowed to
supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price
is from someone other than an MSE. Such MSEs shall be allowed to supply up to 20% of total
tendered value. In case of more than one such MSE, the supply will be shared proportionately (to
tendered quantity).
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MSME EXPO-2015: National Vendor Development Programme
Q. No. 9: What steps are to be taken by the Government Ministries / Departments /
CPSUs to develop MSE Vendors so as to achieve their targets for MSE procurement?
Ans. Central Ministries / Departments / PSUs have to take necessary steps to develop appropriate
vendors by organizing Vendor Development Programmes / Buyer-Seller Meets and entering into Rate
Contract with MSEs for a specified period in respect of periodic requirements.
Q. No. 10: What steps are to be taken by the Government Ministries / Departments /
CPSUs to develop vendors from MSEs owned by SC/ST entrepreneurs?
Ans. For enhancing participation of MSEs owned by SCs / STs in Government procurement, Central
Government Ministries / Departments / PSUs have to take following steps:
1. Special Vendor Development Programmes / Buyer-Seller Meets would be conducted by
Departments / PSUs for SCs / STs;
2. Outreach programmes will be conducted by NSIC to cover more and more MSEs from
SCs / STs under its schemes of consortia formation; and
3. NSIC would open a special window for SCs / STs under its Single Point Registration
Scheme (SPRS).
Q. No. 11: What are the other benefits/ facilities to the MSEs available under the Policy?
Ans. To reduce transaction cost of doing business, MSEs will be facilitated by providing them tender
sets free of cost, exempting MSEs from payment of earnest money, adopting e-procurement to bring
in transparency in tendering process.
Q. No. 12: Whether there is any review mechanism for monitoring and review of the
Policy?
Ans. A Review Committee has been constituted under chairmanship of Secretary, MoMSME for
monitoring and review of Public Procurement Policy for MSEs. MoMSME will review and/or modify
the composition of the Committee as and when required. This Committee will, inter alia, review list of
358 items reserved for exclusive purchase from MSEs on a continuous basis, consider requests from
Departments / PSUs for exemption from 20% target on a case to case basis and monitor achievements
under the Policy.
Q. No. 13: What is the grievance redressal mechanism in case of non-compliance of the
Policy by any Government Department ?
Ans. A ‘Grievance Cell’ would be set up in MoMSME for redressing grievances of MSEs in
Government procurement. This cell would take up issues related to Government procurement raised
by MSEs with Departments / agencies concerned, including imposition of unreasonable conditions in
tenders floated by Government Departments / agencies that put MSEs at a disadvantage.
Q. No. 14: Whether there is any kind of purchases that have been kept out of the
purview of the Procurements under the Policy and if yes, how monitoring of the goal set
will be done ?
Ans. Given their unique nature, defence armament imports will not be included in computing 20%
goal for MoDefence. In addition, Defence Equipments like weapon systems, missiles, etc. will remain
out of purview of such policy of reservation. Monitoring of goals set under the policy will be done, in
so far as they relate to the Defence sector, by Ministry of Defence itself in accordance with suitable
procedures to be established by them.
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MSME—Development Institute, New Delhi
Q. No. 15: From where the detail of the Policy can be obtained?
Ans. Policy details are available on the website of this office- www.dcmsme.qov.in.
Q. No. 16: Whether this Policy is mandatory under any Act?
Ans. Yes, The Policy is mandatory and notified under the MSMED Act,2006.
Q. No. 17: How many items are reserved for exclusive purchase from MSEs?
Ans. There are 358 items reserved for exclusive purchase from MSE Sector and 21 items reserved for
exclusive manufacturing in MSE Sector which is not concerned to the Public Procurement Policy.
Q. No. 18: Whether this policy is applicable for works / trading activities also?
Ans. Policy is meant for procurement of only goods produced and services rendered by MSEs.
Q. No. 19: Whether policy is applicable for MSEs registered with NSIC?
Ans. Policy is applicable to MSEs registered with DIC/KVIC/KVIB/Coir Board/NSIC/Directorate of
Handicrafts and Handloom or any other body specified by Ministry of MSME.
Q. No. 20: Whether policy provides benefits for exemption from Security Deposits to
MSEs?
Ans. No. Policy provides benefits to supply tender set at free of cost and exemption from payment of
earnest money etc.
Q. No. 21: Whether MSE quoting price within price band L1 + 15 % could be given
complete supply to tender in case tender item is non-splitable / non- dividable?
Ans. In case of tender item is non-splitable or non-dividable, etc. MSE quoting price within price
band L1+15% may be awarded for full / complete supply of total tendered value to MSE, considering
spirit of policy for enhancing the Govt, procurement from MSE.
Q. No. 22: Which are MSEs owned by SC / ST enterprises?
Ans. Definition of MSEs owned by SC / ST is as given under:
i.
In case of proprietary MSE, proprietor(s) shall be SC /ST.
ii. In case of partnership MSE, the SC / ST partners shall be holding at least 51% shares
in the unit.
iii. In case of Private Limited Companies, at least 51% share shall be held by SC / ST
promoters.
Q. No. 23: Whether Government Ministries / Departments / CPSUs those have meager
value of total procurement may be exempted from policy?
Ans. Policy is applicable to all the Govt. Ministries / Departments / CPSUs in irrespective of volume
and nature of procurement.
Q. No. 24: Whether policy has provision for exemption from 20%age procurement
target?
Ans. No. However, Review Committee may consider any request of Ministries / Departments /
CPSUs for exemption from 20% age procurement targets on case to case basis.
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MSME EXPO-2015: National Vendor Development Programme
Schemes of Ministry of MSME for MSEs:
Credit Guarantee Fund Scheme:
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched
by the Government of India to make available collateral-free credit to the Micro and Small Enterprise
sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The
Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India
(SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The
institutions, which are eligible under the scheme, are scheduled commercial banks (Public Sector
Banks/Private Sector Banks/Foreign Banks) and select Regional Rural Banks (which have been
classified under 'Sustainable Viable' category by NABARD). National Small Industries Corporation
Ltd. (NSIC), North Eastern Development Finance Corporation Ltd. (NEDFi) and SIDBI have also been
made eligible institutions.
The credit facilities which are eligible to be covered under the scheme are both term loans and
working capital facility up to Rs.100 lakh per borrowing unit, extended without any collateral security
or third party guarantee, to a new or existing Micro and Small Enterprise. For those units covered
under the guarantee scheme, which may become sick owing to factors beyond the control of
management, rehabilitation assistance extended by the lender could also be covered under the
guarantee scheme. Another important requirement under the scheme is that the credit facility should
be availed by the borrowing unit from a single lending institution. However, the unit already assisted
by the State Level Institution/NSIC/NEDFi can be covered under the scheme for the credit facility
availed from member bank, subject to fulfillment of other eligibility criteria. Any credit facility in
respect of which risks are additionally covered under a scheme, operated by Government or other
agencies, will not be eligible for coverage under the scheme.
The Guarantee cover under the scheme is for the agreed tenure of the term loan/composite
credit. In case of working capital, the guarantee cover is of 5 years or block of 5 years. The guarantee
cover available under the scheme is as below:
 85% for loans up to Rs.5 lakh
 75% for loans from Rs.5 lakh to Rs.50 lakh
 Above Rs.50 lakh upto Rs.100 lakh: Rs.37.5 lakh + 50% for amount above Rs.50 lakh (max
of Rs. 62.5 lakh)
MSEs operated and/or owned by women and loans in the North-East Region:
 85% for loans up to Rs.5 lakh
 80% for loans from Rs.5 lakh to Rs.50 lakh
 Above Rs.50 lakh up to Rs.100 lakh: Rs.40 lakh + 50% for amount above Rs.50 lakh, to a
max of Rs. 65 lakh
A composite all-in Annual Guarantee Fee of 1.0 % p.a. of the credit facility sanctioned (0.75%
for credit facility upto Rs. 5 lakh and 0.85% for above Rs. 5 lakh and upto 100 lakh for Woman, Micro
Enterprises and units in NER including Sikkim) is being charged.
ISO 9000/14001 Certification Fee Reimbursement Scheme:
To enhance the competitive strength of the MSEs the Government introduced a scheme to
incentives technological upgradation, quality improve3ment and better environment management by
the MSEs. The scheme reimburses 75% of the fees, subject to a maximum of the fees, subject to a
maximum of Rs. 75,000/-, for acquiring Quality Management System (QMS)/ISO 9000 certification
and /or Environment Management System (EMS)/ISO 14001 Certification by the MSEs.
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MSME—Development Institute, New Delhi
Credit Linked Capital Subsidy Scheme:
The Credit Linked Capital Subidy Scheme (CLCSS) aims at facilitating technology upgradation
by providing 15% upfront capital subsidy w.e.f. 29TH September, 2005 to manufacturing MSEs, on
institutional finance up to Rs. 1 crore availed of by them for induction of well-established and
improved technologies in the specified sub-sectors/products approved under the scheme.
Micro and Small Enterprises-Cluster Development (MSE-CDP):
The MSE-CDP Scheme is being implemented for holistic and integrated development of micro
and small enterprises in clusters through Soft Interventions (such as diagnostic study, capacity
building, marketing development, export promotion, skill development, technology upgradation,
organizing workshops, seminars, training, study visits exposure visit, etc.), Hard Interventions
(setting up of Common Facility Centres) and Infrastructure Upgradation (create/upgrade
infrastructural facilities in the new/existing industrial areas/clusters of MSEs).
Under the Scheme, financial assistance is provided for preparation of Diagnostic Study Report
with a maximum grant of Rs. 2.50 lakh, upto 90% of the project cost of maximum Rs. 25.00 lakhs for
Soft Interventions, upto Rs. 5.00 lakh for preparation of Detailed Project Report DPR), upto 90% of
the project cost maximum Rs. 15.00 Crore for Hard Intervention (Common Facility Centre), upto 80%
of the project cost of maximum Rs. 10 Crore for Infrastructure Development.
Under the Scheme, there is infrastructure development component which has provision for
development of infrastructure facilities in new/existing industrial areas/estates or existing industrial
areas/estates/cluster of a eligible project cost upto Rs. 10 crore (excluding the cost of land) the cost of
land) with Government of India assistance 60% of the project cost ( Rs. 6 crore) in general cases and
80% (Rs. 8 crore) for NE & Hill States, industrial areas/estates with more than 50% (a) micro, (b)
women owned and (c) SC/ST units. The remaining amount will be loan from SIDBI/Banks/Financial
Institutions or equity from State/UT Government.
National Manufacturing Competitiveness Programme (NMCP):
The National Manufacturing Competitiveness Programme is the nodal programme of the
Government of India to develop global competitiveness among Indian MSMEs. Conceptualised by the
National Manufacturing Competitiveness Council, the Programme was initiated in 2007-08. There
are ten components under the NMCP targeted at enhancing the competitiveness for the entire value3
chain of the Micro, Small and Medium Enterprises (MSME) sector. These are:
a) Building awareness on Intellectual Property Rights for the Micro, Small and Medium
Enterprises (MSMEs): The Scheme for “Building Awareness on Intellectual Property Rights
(IPR), for the Micro, Small and Medium Enterprises (MSMEs) has been launched to enable Indian
MSMEs to attain global leadership position and to empower them in using effectively the tools of
Intellectual Property Rights (IPR) of innovative projects. The main features of the scheme are (i)
Awareness/Sensitization Programmes on IPR; (ii) Pilot Studies for Selected Clusters/Groups of
Industries; (iii) Interactive seminars/Workshops; (iv) Specialized Training; (v) Assistance for
Grant on Patent/GI Registration; (vi) Setting up of IP Facilitation Centre (IPFC); and (vii)
Interaction with International Agencies. These initiatives are being developed through PublicPrivate Partnership (PPP) mode.
b) Scheme for Providing Support for Entrepreneurial and Managerial Development of
SMEs through Incubators: The scheme aims at nurturing innovative business ideas (new/
indigenous technology, processes, products, procedures, etc.), which could be commercialized in a
year. Under the scheme, various institutions like Engineering Colleges, Research Labs etc. will be
provided funds upto Rs. 6.25 lakh for handholding each new idea/entrepreneur. The incubator will
provide technology guidance, Workshop and Lab support and linkage to other agencies for
successful launching of the Business and guide the entrepreneur in establishing the enterprise.
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MSME EXPO-2015: National Vendor Development Programme
c) Enabling Manufacturing Sector to be Competitive through Quality Management
Standards (QMS) and Quality Technology Tools (QTT): During the year 2008-09,
Government of India launched a scheme, ‘Enabling Manufacturing Sector be Competitive through
Quality Management Standards (QMS) and Quality Technology Tools (QTT)’ in order to improve
quality and productivity in the MSE sector. The scheme is aimed at improving the quality of the
products in the MSE sector and inculcates the Quality consciousness in this sector. The major
activities under this scheme are : (i) Introduction of Appropriate Modules for Technical Institution;
(ii) Organizing Awareness Campaigns for MSEs; (iii) Organizing Competition-Watch (C-Watch);
(iv) Implementation of Quality Management Standards and Quality Technology Tools in selected
MSEs; (v) Monitoring International Study Missions; and (vi) Impact Studies of the initiatives.
d) Marketing Assistance/Support to MSEs (Bar Code): The objective of the ‘Marketing
Assistance/Support to MSEs scheme of NMCP is to popularize the Bar Code registration and
motivate the small and micro-manufacturing enterprises to adopt the Bar Code Certification on
large scale and to sell their value added products worldwide and enable higher export price
realization. It also helps in domestic marketing (wholesale & retail). 75% of annual fee (recurring)
of Bar Code certification for the first three years are reimburse to micro and small entrepreneurs
under4 the Scheme.
e) Lean Manufacturing Competitiveness Scheme (LMCS) for MSMEs: Under the scheme,
MSMEs are being assisted in reducing their manufacturing costs through proper personnel
management, better space utilization, scientific inventory management, improved process flows,
reduced engineering time and so on. LMCS also brings improvement in the quality of products and
lowers costs which are essential for competing in national and international markets. The scheme
will be implemented in 500 mini clusters during 12th Five Year Plan with the total Project Cost of
Rs. 240.94 crores (Govt. of India Contribution amounting to Rs. 204.94 cr. and beneficiaries
contribution of Rs 36.00 cr.). The broad activities planned under the scheme include
implementation of Total Productive Maintenance (TPM, 5S, Visual Control, Standard Operation
Procedures, Just in Time, Kanban System, Cellular Layout, Poka Yoke, TPM, etc.).
f) Promotion of Information & Communication Tools (ICT) in Indian Micro, Small and
Medium Enterprises (MSME) Sector: The objective of this scheme envisages that some of
those clusters of SMEs, which have quality production and export potential, shall be identified &
encouraged and assisted in adopting ICT applications to achieve competitiveness in the national
and international markets. The total Gol contribution is stipulated as Rs. 47.7 crore (approx.) for
this scheme. The broad activities planned under the scheme include, identifying target clusters for
ICT intervention, setting up of e-readiness centre, develop0ing web portals for clusters, skill
development of MSME staff in ICT applications, preparation of local software solutions for MSMEs
to enhance their competitiveness, and networking MSME cluster portals on the National Level
Portal in order to outreach MSMEs into global markets.
g) Design Clinics Scheme for MSMEs: The main objective of the scheme is to bring the MSME
sector and design expertise into a common platform and to provide expert advice and solutions on
design problems, resulting in continuous improvement and value-addition for existing products. It
also aims at value-added cost effective solutions. The GoI contribution is stipulated as Rs. 49.08
crore for this scheme. The broad activities planned under the scheme include set up of Design
Clinics Centre in Delhi along with 4 regional centres for intervention on the design needs of the
MSME sector, organizing seminar/workshops, financial assistance to student designed projects/
individual projects upto 3 MSMEs/Group of 4 MSMEs or more.
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MSME—Development Institute, New Delhi
h) Marketing Assistance and Technology Upgradation Scheme for MSMEs: The objective
of this scheme is to identify and encourage those clusters of MSMEs, which have quality production
and export potential and assist them to achieve competitiveness in the national and international
markets. The scheme aims at improving the marketing competitiveness of MSME sector by
improving their techniques and technology for promotion of exports. The GoI contribution is
stipulated as Rs. 18.6 crore for this scheme. The broad activities planned under the scheme include
technology upgradation in packaging, development of modern marketing techniques, competition
studies, corporate governance practices, setting up of marketing hubs, Stat/District level
exhibitions etc.
i) Technology and Quality Upgradation Support to MSMEs: The objective of the Scheme is
to sensitize the manufacturing (MSME) sector in India to upgrade their technologies, usage of energy
efficient technologies to reduce emissions of Green House Gases, adoption of other technologies mandated as
per the global standards, improve their quality and reduce cost of productions, etc., towards becoming
globally competitive. The major activities planned under the scheme include Capacity Building of MSMEs
Clusters for Energy Efficiency/Clean Development Interventions, Implementation of Energy Efficient
Technologies in MSME sector, Setting up of Carbon credit aggregation centers and encouraging MSMEs to
acquire product certification licenses from National/International bodies. The scheme total budget is Rs.
140.98 crore with GoI contribution of about Rs.65 crore.
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