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Inviting suggestions on list of 469 items reserved for exclusive purchase from MSEs under Public Procurement Policy

Inviting suggestions on list of 469 items reserved for exclusive purchase from MSEs under Public Procurement Policy
Start Date :
Nov 01, 2022
Last Date :
Nov 30, 2022
23:45 PM IST (GMT +5.30 Hrs)
Submission Closed

The Central Government Ministries/ Departments and Central Public Sector Undertaking are mandated to procure 25% (as amended in 2018) of their annual value of goods or services ...

The Central Government Ministries/ Departments and Central Public Sector Undertaking are mandated to procure 25% (as amended in 2018) of their annual value of goods or services from micro and small enterprises vide Public Procurement Order Notified vide S.O. 581 (E) dated 23rd March 2012. Under the policy, 358 items are exclusively reserved for procurement from MSEs which help in the promotion and growth of Micro and Small Enterprises and play a critical role in fostering inclusive growth in the country.

The existing list required a relook to find out the relevance in the present-day context of technological change, and the growth of small and micro enterprises. The Internal Technical Committee of the Ministry of Micro Small and Medium Enterprises has prepared a revised list of 469 items (including Goods & Services) to be reserved for exclusive procurement from MSEs.

Stakeholders, Industries associations, MSME units and the General public are invited to share their suggestions and comments on the list of 469 items reserved for exclusive purchase from MSEs under the Public Procurement Policy.

Please click here to refer to the list of 469 items reserved for exclusive purchase from MSEs under the Public Procurement Policy. (PDF 272 KB)

Last date to submit suggestions is 30 November 2022.

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SANJAY SARKAR
SANJAY SARKAR 3 years 11 months ago
Dr. C.S. Prasad, Economic Adviser, Office of DC(SSI) and Shri M.C. Singhi, Dy. Economic Adviser, Office of the Economic Adviser, Ministry of Industry submitted two independent papers on Reservation Policy which were gone through by the Committee and the criteria indicated above were decided after discussion on the points raised in these two notes.
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SANJAY SARKAR
SANJAY SARKAR 3 years 11 months ago
Meetings of the Committee :In all, the committee held eight meetings. The Committee decided to elicit the views of the State Governments, concerned Ministries of Central Government and Small Scale Industrial Institutions through the office of the Development Commissioner for Small Scale Industry. 
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SANJAY SARKAR
SANJAY SARKAR 3 years 11 months ago
The Committee was asked to keep in mind the following factors while examining the list of items reserved : i) Interests of small industries. ii) The minimum economic scale of production. iii) The need for technological upgradation. iv) National and international competitiveness. v) Productivity. vi) Serving consumer interests. vii) The import and export policy particularly export orientation of small enterprises. viii) Labour intensity. ix) Other related considerations as deemed appropriate.
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SANJAY SARKAR
SANJAY SARKAR 3 years 11 months ago
Constitution of Committee of officials to review reservation : The Advisory Committee on Reservation in its 14th meeting held on 28th August, 1995 has appointed a Committee of Officials to review the reservation list and submit recommendations to the Advisory Committee from time to time. The order of the Committee was issued on 17th October, 1995. The Committee consists of following members: - Shri T.S. Vijayaraghvan, additional Secretary, Ministry of Commerce - Chairman. - Shri B.D. Jethra, Addl. Adviser, Planning commission - Member. - Shri B. Bhanct, Deputy Director General, Department of I.D. - Member. - Dr. Ahmad Masood, Member Technical, BICP - Member. - Dr. C.S. Prasad, Addl. Development Commissioner and Economic Adviser, DC(SSI) -   Member. - Ms. Aditi Ray, Deputy Economic Adviser, Department of IP&P - Member. - Shri M.C. Singhi, Deputy Economic Adviser, Ministry of Industry - Member. - Shri Bhahm Dutt, Joint Secretary, Department of SSI&ARI - Member-Convenor.
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SANJAY SARKAR
SANJAY SARKAR 3 years 11 months ago
It was reported that a large number of items as are reserved for small scale are not even produced in the country (The Office of Development Commissioner, however, verified this from the State Governments and SSI Associations and found that many of these items are manufactured in the SSI Sector). Necessity for a relook has also arisen on account of better awareness on safety, quality, environment pollution, productivity etc.
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SANJAY SARKAR
SANJAY SARKAR 3 years 11 months ago
The items produced must be competitive and must meet the needs of consumers from the angles of quality, safety and hygiene. It is being argued that SSI reservation has resulted in monopoly like situation in the production of some consumer items by some large scale units who were having an approved capacity prior to reservation and thus dismantling the very objective for which reservation was made. According to a study carried out by National Informatics Centre (NIC) based on data made available by the Second All India Census of Registered SSI Units (1987-88). I
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SANJAY SARKAR
SANJAY SARKAR 3 years 11 months ago
After the introduction of economic reforms with emphasis on liberalisation, delicensing and deregulation a need has been felt for a review of the reservation policy. In today's environment, one has to not only globally compete but has also to compete in the domestic market when the imports are freely allowed except in consumer items. 
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SANJAY SARKAR
SANJAY SARKAR 3 years 11 months ago
is argued that the policy of reservation has led to rapid growth of the SSI Sector, since a significant number of units have come up in the reserved field. According to the Second All India Census, while only about 11% of items are reserved, the units producing reserved items accounted for 36% of the total number of registered units and as etch, employ a large number of persons. 
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