PSUs to Ensure 20% Procurement from MSMEs

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The government, in a move likely to have a big impact, has made it mandatory for all central government ministries and departments to procure at least 20% of products and services from MSMEs or micro, small and medium enterprises.

“If the MSMEs can deliver the goods and services as per prescribed technical & quality specifications, the norms on prior experience and prior turnover will be relaxed for them,” the MSME Ministry said in a release.

“The move will enable startup MSMEs to be a part of the mandatory 20 per cent public procurement. The relaxation has been made to create a conducive environment for the startups in India, which is high on the agenda of the government,” the MSME Ministry said.

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