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MADHAV LAL

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Secretary

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GOVERNMENT OF INDIA

MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

UDYOG BHAWAN, NEW DELHI·110 011

Tel. : +91·11-23062107 Fax: 23063045

Dear

D.O. No. 21 (l5)/2012-MA2nd December 2013

The Public Procurement Policy for Micro & Small Enterprises (MSEs) was notified by theGovernment under the Micro, Small and Medium Enterprises Development Act 2006, and it came intoeffect from 151 April, 2012. The Policy mandates that at least 20% of the total annual procurement ofgoods and services shall be made by all Central Ministries/ Departments/ Central Public SectorUndertakings (CPSUs) from the Micro and Small Enterprises (MSEs). Within this mandated percentage,a sub-target of 4% procurement is to be made from MSEs owned by SC/ST entrepreneurs.

2. As part of the follow up action on the policy, we have been corresponding with Ministries/Departments/ CPSUs from time to time, and requesting them to take action on the policy provisions, andalso for providing procurement data,etc., to this Ministry. The relevant correspondence in this regard isavailable on the website www.dcmsme.gov.in for ready reference by the implementing agencies.

3. I would like to draw your specific attention to para 5 of the policy notification which reads asunder:

(1) "The data on Government procurements from Micro and Small Enterprises is vital for strengthening thePolicy and for this purpose, every Central Ministry or Department or Public Sector Undertaking shallreport goals set with respect to procurement to be met from Micro and Small Enterprises and achievementmade thereto in their respective Annual Reports.

(2) The annual reporting shall facilitate in better understanding of support being provided by differentMinistries or Departments or Public Sector Undertakings to Micro and Small Enterprises."

4. You will kindly appreciate that the Ministries were required to set targets and disclose theachievement in their Annual Reports for 2012-13. The same was also to be done by the CPSUs. I shallbe grateful if a report on the compliance of this requirement is sent, along with the Annual Reports of2012-13, to the Development Commissioner (MSME), Ministry of MSME, ih Floor, Nirman Bhawan,New Delhi. In case the relevant information has not been incorporated in the Annual Report for 2012-13, the information may be sent now, along with the reasons for non-disclosure, if any. Also, I requestthat the concerned officers may be sensitized about the provisions of the policy for the current year2013-14.

5. I look forward to your cooperation in the effective implementation of the policy.Yourte1Y ,(Madhav Lal)

(As per list enclosed)

} .Shri Rajiv Gupta,SecretaryDepartment of Youth Affairs C - Wing, Shastri Bhawan,New Delhi - 110001

2Shri Pradeep Kumar Deb,SecretaryDepartment of SportsC - Wing, Shastri Bhawan, Dr. Rajendra Prasad Road,New Delhi - 110001

Ms. Nita Chawdhury,SecretaryMinistry of Women and Child DevelopmentShastri Bhawan, A - Wing, Dr. Rajendra Prasad Road,New Delhi - 110001

Shri Alok Rawat,Secretary,Ministry of Water ResourcesRoom No. 412, Shram Shakti Bhawan, Rafi Marg,New Delhi - 110001

Dr. Sudhir KrishnaSecretary,Ministry of Urban Development,Nirman Bhawan,C - Wing, Dr. Maulana Azad Road,New Delhi - 1100 11

Ms. Vibha Puri Das,Secretary,Ministry of Tribal Affairs, A-WingKrishi Bhawan,New Delhi - 110001

- Shri Parvez Dewan,Secretary,Ministry of TourismTransport Bhawan, Sansad Marg,New Delhi - 110001

Ms. Zohra ChatterjiSecretary,Ministry of TextilesUdyog Bhawan,New Delhi - 1100 11

Shri G. Mohan Kumar,Secretary,Ministry of Steel,Udyog Bhawan,New Delhi - 1100 11

Dr. T. C. A. AnantI - Secretary,

Ministry of Statistics and Programme ImplementationSardar Patel Bhawan, Sansad Marg,New Delhi - 110001

Dr. K. RadhakrishnanSecretaryDepartment of Space ISRO Hq.,Antariksh Bhavan,New Bel Road,Bangalore- 560231

)Shri Stuti Narain Kackar,Secretary,Mlo Social Justice and Empowerment,Department of Disability Affairs, Shastri Bhawan,New Delhi

:/'Shri Sudhir Bhargava,Secretary,Ministry of Social Justice & EmpowermentC-Wing, Shastri Bhawan,New Delhi-

Dr. (Prof) K. Vijay Raghavan,Secretary,Department of BiotechnologyBlock No.2, CGO Complex, Lodhi RoadNew Delhi - 110003

J5 Dr. T. RamasamiSecretary,Ministry of Science and TechnologyTechnology Bhavan,New Mehrauli Road,New Delhi.

Shri Vishwapati Trivedi,Secretary,

b Ministry of ShippingRoom No. 401, Transport Bhawan, Sansad Marg,New Delhi - 110001

Shri B.B. Srivastava,Secretary,Department of Land Resources (DLR),Krishi Bhawan, Dr. Rajendra Prasad Road,New Delhi.

IShri L.C. Goyal,Secretary,Department of Rural Development (DRD)Krishi Bhawan, Dr. Rajendra Prasad Road,New Delhi-

It:).Shri V. Chhiber,Secretary,Ministry of Road Transport and HighwaysTransport Bhawan, Sansad Marg,New Delhi - 110001

Ms. Sindhushree Khullar,Secretary,Planning Commission,Yojna Bhawan,New Delhi.

Shri Vivek Rae,Secretary,Ministry of Petroleum & Natural GasA-Wing, Shastri Bhawan, Dr. Rajendra Prasad Road,New Delhi - 110001

Shri Sanjay Kothari,Secretary,Department of Pension & Pensioner's WelfareNorth Block,New Delhi - 110001

Shri Syamal Kumar Sarkar,Secretary,Department of Personnel and TrainingNorth Block,New Delhi - 110001

Ms. Loretta Mary VasSecretary,Ministry of Panchayati RajKrishi Bhawan, Dr. Rajendra Prasad Road,New Delhi - 110001

Shri Prem Narain,Secretary,Ministry of Overseas Indian AffairsAkbar Bhawan, Chanaykapuri,New Delhi - 110021

Shri Ratan P. Watal,Secretary,Ministry of New & Renewable Energy,Block No 14, CGO Complex, Lodhi Road,New Delhi - 110003

Dr. Lalit K. Panwar,Secretary,Ministry of Minority Affairs11th Floor, Paryavaran Bhawan, CGO Complex,New Delhi - 110003

Shri R.H. Khwaja,Secretary,Ministry of MinesC-Wing, Shastri Bhawan,New Delhi

Shri P.K. Malhotra,Secretary,Legislative DepartmentRoom No .405 A-Wing, Shastri BhavanNew Delhi.

Shri Brahm Avtar Agrawal,Secretary,Department of Legal AffairsShastri BhawanA-Wing, Dr Rajendra Prasad RoadNew Delhi-

Shri Bimal Julka,Secretary,Ministry of Information & Broadcasting,Shastri Bhawan,New Delhi.

Shri. R. Bhattacharya,Secretary,Department of School Education & Literacy,C Wing, Shastri Bhawan,New Delhi

Smt. Gauri Kumar,Secretary,Ministry of Labour and EmploymentShram Shakti Bhawan, Rafi Marg,New Delhi - 110001

Shri Arun Kumar Jain,Secretary,Department of Official Languages,Lok Nayak Bhawan, C- Wing, Khan Market,New Delhi 110003

Shri Anil Goswami,Secretary,Department of Home,Room No. 113, North Block,New Delhi

Shri Sutanu Behuria,Secretary,Department of Heavy Industries,Block No. 14, CGO Complex,New Delhi -3.

Shri O.P. Rawat,Secretary,Department of Public Enterprises,CGO Complex, Block No.14, Lodi Road,New Delhi

Dr. Vishwa Mohan Katoch,Deptt of Health Research, ICMR,V. Ramalingaswami Bhawan, Ansari Nagar,New Delhi-110029

1/).Shri Nilanjan Sanyal,Secretary,Department of Ayurveda, Yoga & Naturopathy, Unani & Siddha,1, Red Cross Road,New Delhi 110001

Shri K.N. Desiraju,Secretary,Department of Health & Family Welfare,C Wing, Nirrnan Bhawan,New Delhi

Shri Ravi Mathur,Secretary,Ministry of DisinvestmentCGO Complex, Block No. 14, 3rd Floor,New Delhi

Shri Sumit Bose,Secretary,Department of Revenue,Ministry of Finance,128-A, North Block,New Delhi.

Shri R.S. Gujral,Finance Secretary,Department of Expenditure,North Block,New Delhi

Shri Arvind Mayaram,Secretary,Deptt. of Economic Affairs,131, North Block,New Delhi.

l1"- Shri Rajiv Takru,Secretary,Department of Financial Services,Room No.6, Jeevan Deep, Parliament Street,New Delhi

Dr. V. Rajagopalan,Secretary,Ministry of Environment & Forests,Paryavaran Bhawan, CGO Complex, Lodhi Road,New Delhi 110003

Dr. Shailesh Nayak,0:; .Secretary,

Ministry of Earth Sciences,Mahasagar Bhawan, Block-12, C.G.O. complexLodhi Road, New Delhi

Shri Pankaj Jain,Secretary,Ministry of Drinking Water & Sanitation,Room No.247, A Wing,Nirman Bhawan,New Delhi

Shri Uttam Kumar Sangma,Secretary,Ministry of Development of North Eastern Region,Vigyan Bhawan Annexe,New Delhi

!:b' Shri Ravindra Singh,Secretary,Ministry of Culture, C Wing,Shastri Bhawan,New Delhi 110001

Shri Pankaj Agarwal,Secretary,Department of Consumer Affairs,Krishi Bhawan,New Delhi

Shri Sudhir Kumar,Secretary,Department of Food & Public Distribution,Krishi Bhawan,New Delhi

Shri Naved Masood,Secretary,Ministry of Corporate Affairs,A Wing, Shastri Bhawan,New Delhi

91- Ms. P. Gopinath,Secretary,Department of Posts,Dak Bhawan, Sansad Marg,New Delhi

· .•

Shri M F Farooqui,J~~ Secretary,

Department of Telecommunications,Sanchar Bhawan,Rafi Marg, New Delhi

Shri Saurabh Chandra,Secretary,Department of Industrial Policy & Promotion,Udyog Bhawan,New Delhi.

Shri S.R. Rao,Secretary,Department of Commerce,Udyog Bhawan,New Delhi.

Shri S.K. Srivastava,Secretary,Ministry of Coal,A Wing, Shastri Bhawan,New Delhi 110001.

, *Shri K.N. Srivastava,Secretary,Ministry of Civil Aviation,Rajiv Gandhi Bhawan, Safdarjung Airport,New Delhi 110003

Ms. Aradhana Johri,Secretary,Department of Pharmaceuticals,A Wing, Shastri Bhawan,New Delhi

Shri Rajeev MehrishiSecretary,Department of Fertilizers,A Wing, Shastri Bhawan,New Delhi

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Shri Indrajit Pal,Secretary,Department of Chemicals & Petrochemicals,A-Wing, Shastri Bhawan, Dr. Rajendra Prasad Road,New Delhi 110001.

Dr. Ratan Kumar Sinha,Secretary,Department of Atomic Energy,Anushakti Bhavan, Chatrapati Shivaji Maharaj Marg,Mumbai.

Shri Anup Kumar Thakur,Secretary,Department of Animal Husbandry, Dairying & Fisheries,Room No. 229, Krishi Bhawan,New Delhi

Dr. S. Ayyappan,Secretary,Department of Agricultural Research and Education,Room No. 107, Krishi Bhawan,New Delhi

Shri Ashish Bahaguna,Secretary,Department of Agriculture & Cooperation,Room No. 115, Krishi Bhawan,New Delhi. /-s

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MADHAV LALSecretary

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GOVERNMENT OF INDIA

MINISTRY OF MICRO. SMALL AND MEDIUM ENTERPRISES

UDYOG SHAWAN. NEW DELHI·ll0 011

Tel.: +91-11-23062107 Fax: 23063045

D.O. No. 20(1)2013-MA(Pt)

11th July, 20]4

This is with reference to D.O. letter of even number dated zo" February,2014 from Additional Secretary & Development Commissioner (MSME) andfollow up letter dated zs" June, 2014 (copies enclosed) requesting Ministry ofRailway to send a report regarding Vendor Development Programme (VDP) andother initiative action taken for effective implementation of Public ProcurementPolicy.

I would like to bring to your notice that during the meeting of Committee ofSecretaries held on 22.1.014, the Committee observed that Rail way may put inplace a Vendor Development Programme for MSEs in order to meet the stipulatedtargets and more VDPs are required to be conducted by Rai [way for SC/STentrepreneurs apart from MSEs to achieve the targ t of 4% procurement fromi\1SEs owned by SC/ST entrepreneur under the policy.

I solicit your personal intervention in the matter and also request you tomake available said report on VDPs conducted & other initiatives taken forachieving stipulated targets and sensitize CPSUs/offices under your control aboutthe statutory nature of the public procurement policy for MSE

Yours sincerely,

i:(Madhav Lal)

Sh ri Arunendra Kumar,Chairman,Railway Board,Rail Bhavan,New Delhi.

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OFFICE OF THE DEVELOPMENT COMMISSIONER(MICRO, SMALL & MEDIUM ENTERPRISES)

MINISTRY OF MICRO, SMALL & MEDIUM ENTERPRISES

GOVERNMENT OF INDIA

Nirman Bhawan, 7th Floor, Maulana Azad Road,

New Delhi -110108MICRO, SMALL & MEDIUM ENTERPRISES~1'Ii"f~~""f""""'~

Ph.EPABX - 23063800, 23063802, 23063803 FAX - (91-11) 23062315, 23061726, 23061068, e-mail - dcmsmehq@nb.nic.in

1115111::

F.No. 21(15)/2012-MA Dated the December, 2013

Office Memorandum

Subject: Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012-Regarding provision of procurement data in Annual Report

Public Procurement Policy for Micro and Small Enterprises (MSEs) was notified by theGovernment under the Micro, Small and Medium Enterprises Development Act, 2006, and it came intoeffect from 1st April, 2012. The policy mandates that at least 20% of the total annual procurement ofgoods and services shall be made by all Central Ministries/Departments/Central Public SectorUndertakings (CPSUs) from the Micro and Small Enterprises (MSEs). Within this mandatedpercentage, a sub-target of 4% procurement is to be made from MSEs owned by SC/STentrepreneurs.

2. As part of the follow up action on the policy, it has been corresponding withMinistries/Departments/CPSUs from time to time, and requesting them to take action on the policyprovisions, and also for providing procurement data, etc., to this Ministry. The relevantcorrespondence in this regard is available on the website www.dcmsme.gov.in for ready reference bythe implementing .agencies.

3. The para 5 of the Policy mandates as under:-

(1) "The data on Government procurement from Micro and Small Enterprises is vital forstrengthening the Policy and for this purpose, every Central Ministry or Department or PublicSector Undertakings shall report goals set with respect to procurement to be met from Microand Small Enterprises and achievement thereto in their respective Annual Reports".

(2) The annual report shall facilitate in better understanding of support being provided bydifferent Ministries/Departments or Public Sector Undertakings to Micro and Small Enterprises.

4. As per the provision mentioned in para 3, all CPSUs were required to set targets and disclosethe achievements made thereon in their Annual Report for the year 2012-13. It is requested that theconfirmation of said targets and achievements placed in the Annual Report by indicating page No(s)where the relevant information is incorporated in the report may be communicated to this officeimmediately. In case, the relevant information has not been incorporated in the Annual Report for2012-13, the information may be sent along with the reasons for non-disclosure. It is also requestedthat the concerned officers may be sensitized about these provisions of the policy for the current year2013-14.

~"l.")(Ramesh K. Pandey)

Joint Development Commissioner

To

Chairman and Managing Director of all the CPSUs

No.21 (15)/2012-MA (Pt.)Government of India

Ministry of Micro, Small & Medium EnterprisesOffice of the Development Commissioner (MSME)

Marketing Assistance Division

Nirman Bhawan, New Delhi.September 11, 2012

Subject:- Public Procurement Policy for MSEs, Order 2012 -regardingprovisions contained therein.

You are aware that Government has notified a Public Procurement Policyfor MSEs, Order 2012 which is applicable for all the Ministries I Departments. Inthis context, it is informed that mandatory action on the following points is requiredto be taken by the all Ministries I Departments.

Under para 5 of the policy, every Ministry I Department has to report goalsset with respect to procurement to be met from Micro and Small Enterprisesand achievement thereto in their respective Annual Reports.

Under para 7 & 9 (a) of the policy, every Ministry I Department has to takenecessary steps to develop appropriate vendors by organizing VendorDevelopment Programmes, Buyer-Seller Meets and entering into ratecontract with Micro and Small Enterprises. Further, for enhancingparticipation of MSEs owned by SC 1ST Entrepreneur in governmentprocurement, every Ministry I Department has to take necessary steps fororganizing Special Vendor Development Programmes for Schedule Casteand Schedule Tribes Entrepreneurs also.

ii

Under para 8 of the policy, every Ministry I Department has to prepareAnnual Procurement Plan for purchases and up-load the same on theirofficial website so that Micro and Small Enterprises may get advanceinformation about requirement of procurement agencies.

III.

You are requested to take necessary steps for compliance of above points.A line in confirmation about the action taken by your corporation in the matter mayplease be communicated to this office.

~-

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(Ramesh K. Pandey)Joint Development Commissioner

The Secretary(All Ministries / Departments)

No.21 (15)/2012-MA (Pt.)Government of India

Ministry of Micro, Small & Medium EnterprisesOffice of the Development Commissioner (MSME)

Marketing Assistance Division

Nirman Bhawan, New Delhi.September 11, 2012

Subject:- Public Procurement Policy for MSEs, Order 2012 -regardingprovisions contained therein. ";1

~;.

You are aware that Government has notified a Public Procurement Policyfor MSEs, Order 2012 which is applicable for all the Central PSUs. In this context,it is informed that mandatory action on the following points are required to be takenby the all Central Public Sector Undertakings;

Under para 5 of the policy, every PSU has to report goals set with respectto procurement to be met from Micro and Small Enterprises andachievement thereto in their respective Annual Reports.

Under para 7 & 9 (a) of the policy, every PSU has to take necessary stepsto develop appropriate vendors by organizing Vendor DevelopmentProgrammes, Buyer-Seller Meets and entering into rate contract with Microand Small Enterprises. Further, for enhancing participation lof MSEs ownedby SC 1ST Entrepreneur in government procurement, every PSU has to takenecessary steps for organizing Special Vendor Development Programmesfor Schedule Caste and Schedule Tribes Entrepreneurs also.

ii.

iii.

Under para 8 of the policy, every PSU has to prepare Annual ProcurementPlan for purchases and up-load the same on their official website so thatMicro and Small Enterprises may get advance information aboutrequirement of procurement agencies.

You are requested to take necessary steps for compliance of above points.A line in confirmation about the action taken by your corporation in the matter mayplease be communicated to this office.

The Chairman-cum-Managing Director(All CPSUs as per list enclosed)

(Ramesh K~~andey)Joint Development CommiSStoner