MSMEs or micro, small, and medium enterprises are now required to supply at least 20% of all products and services to central government departments and ministries, a move likely to have a big impact. Let's take a closer look at this in more detail.

What is Public Procurement Policy?

The MSME Public Procurement Policy is based on the fundamental ideas of fairness, equity, competition, transparency, and cost-effectiveness. It also adheres to proper procurement procedures and executes orders for the delivery of products and services.

The Policy:

• According to section 11 of the MSMED Act, 2006, the Public Procurement Policy for MSEs Order, 2018 has been notified.
• In accordance with the Gazette notification from 9 November 2018, the Policy will take effect on 1st April 2019.
• The Policy aims to promote and develop Micro and Small Enterprises by supporting their marketing of products and services. The policy, however, adheres to a core principle of fairness, equity, transparency, competitiveness, and cost-effectiveness in the procurement and execution of supplies.

What Policies Support MSMEs & What Are They?

Support for MSMEs Through the ZED Certification Program Financially – The program’s goal is to implement Zero Defect & Zero Effect (ZED) practices in Indian MSMEs’ manufacturing in order to support the “Make in India” drive. The Government of India (GoI) offers MSMEs a subsidy of up to 80% under the program.

Conclusion:

In a release, the MSME Ministry said that previous experience and prior turnover requirements would be relaxed for MSMEs that deliver goods and services according to prescribed technical and quality specifications. If the MSME sector is to expand and become sustainable, it would require a lot of support from the Ministries and other government agencies. Currently, hand holding is required, not just from CPSEs but also from other stakeholders, at this stage of the project’s development. They will be safeguarding the livelihoods of millions of people while also promoting the expansion of a sizable source of national income. To guarantee the success of the policy, a strong coordination framework between the Ministry of MSME and other stakeholders is necessary, with regular reviews and revisions for dealing with any challenges that might arise as the sector expands. If you need to know more about this policy and legal measures, connect with Vakilsearch, India’s number one legal service provider!