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Public Procurement Policy for MSEs Order, 2012

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Objective

Providing Marketing support to the MSEs

Key Benefits

Tender set free of costExemption from the payment of Earnest MoneyIn tender, participating MSEs quoting price within price 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 price is from someone other than an MSE and such MSE shall be allowed to supply upto 25% of the total tendered value.358 items reserved for exclusive procurement from MSEs.The MSEs may also be given exemption in prior experience and turnover clauses.

Applicable For

The Public Procurement Policy mandates 25% annual procurement from MSEs by Central Ministries /Departments/Public Sector Enterprises (CPSEs).Public Procurement Policy is meant for procurement of only goods produced and services rendered by MSEs and works contract is not covered under the purview of Public Procurement Policy.MSEs registered with District Industries Centre (DIC) or Khadi & Village Industries Commission (KVIC) or Khadi & Industries Board (KVIB) or Coir Board or national Small Industries Commission (NSIC) or Directorate of Handicrafts and Handlooms or any other body specified by Ministry of MSME or having Udyog Aadhaar Memorandum (UAM) are eligible to avail the benefits of the policy.

Detailed Information

Ministry of MSME has notified the Public Procurement Policy for MSEs Order, 2012 under Section 11 of MSMED- Act 2006 to provide marketing support to the MSEs which is effective from April 2012 and has become mandatory w.e.f 1st April 2015. It was again reviewed in 2018 and amended vide SO 5670 (E) dated 9 November 2018. The amended policy mandates 25% of annual procurement from MSEs by the Central Ministries/ Departments and CPSEs including 4% from MSEs owned by SC/ST and 3% from MSEs owned by WomenAny registered MSE can register themselves at GeM Portal and avail the benefits of the Public Procurement Policy.

Frequently Asked Question

  • What is MCS?
    MCS is a Fintech platform dedicated to empowering MSMEs by helping them discover and avail government schemes. We provide easy access to regulatory and statutory compliance services and connect MSMEs with professional experts.
  • How can MCS help my business?
    MCS helps your business by providing access to over 800 government schemes, offering expert consultations, and simplifying regulatory processes, ultimately saving time, reducing costs, and accelerating your growth.
  • What is the Partnership Plan?
    The Partnership Plan allows businesses to generate Scheme Reports for their clients, while also gaining access to online consultations through ProSePuccho. This plan provides an additional revenue stream by helping your clients access government schemes.
  • If the expert does not visit, will I get a refund?
    Yes, if the expert does not visit the call for any reason, you will get a refund for the same.
  • Can I modify or cancel an appointment?
    You can modify an appointment an hour before your slot. Incase of cancellation, you would not be getting a refund of the same.
  • How does MCS empower MSMEs with financial solutions?
    MCS is designed to assist Micro, Small, and Medium Enterprises (MSMEs) through a broad range of MSME services and MSME schemes that promote business expansion and resilience. Entrepreneurs can explore options like MSME Loan Scheme, working capital schemes, and term loans to finance growth and innovation. Additionally, MCS helps businesses leverage Credit Linked Capital Subsidy Scheme (CLCSS) and collaborates with the Ministry of Micro, Small and Medium Enterprises (MSME) to ensure financial sustainability and job creation across India.
  • How does MCS bridge the gap with government and institutional support for MSMEs?
    MCS collaborates with institutions like the Small Industries Development Bank of India (SIDBI) and actively works on credit accessibility and funding solutions such as the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE). With the support of state governments, banks, and industry clusters (DICs), we facilitate MSMEs in implementing government initiatives like the Prime Minister’s Employment Generation Programme (PMEGP). Entrepreneurs can apply online for MSME loans or receive assistance to access financial resources like the Fund Trust for Micro Enterprises, enabling them to fully realize their potential.
  • What MSME schemes in India can entrepreneurs access through MCS?
    MCS makes it easy for businesses to access various MSME schemes in India, including funding solutions for small businesses and innovation-driven enterprises. Our platform simplifies scheme integration to help MSMEs tackle interest rate challenges and seamlessly benefit from government-instituted schemes designed for long-term sustainable growth. Whether it's financial support to scale operations or strategic advisory services to drive continuous growth, MCS serves as a consistent partner in the evolution of MSMEs.