Para 10 - MSE Procurement FAQs | KartavyaDesk
Original Rule Text
Manual for Procurement of Consultancy Services, Second Edition, 2025 Q. No.13: What is the grievance redressal mechanism in case of non-compliance of the Policy by any Government Department? Ans. To redress the grievances of MSEs related to non-compliance of the Policy a Grievance Cell named “CHAMPION Portal” has been set up in the Ministry of MSME. Q. No.14: Whether there is any kind of purchase that has been kept out of the purview of procurement under the Policy? If yes, how is the monitoring of the set goal done? Ans. Given their unique nature, Defence armament imports will not be included in computing 25% goal for M/o Defence. In addition, Defence Equipments like weapon systems, missiles, etc. will remain out of purview of such policy of reservation. Monitoring of goals set under the policy will be done, in so far as they relate to the Defence sector, by Ministry of Defence itself in accordance with suitable procedures to be established by them. Q.No.15: From where can the details of the Policy be obtained? Ans. Policy details are available on the website of this office at www.dcmsme.gov.in. Q.No.16: Is this policy mandatory under any Act? Ans. Yes, the Policy is mandatory and notified under the MSMED Act, 2006. Q.No.17: How many items are reserved for exclusive purchase from MSEs? Ans. There are 358 items reserved for exclusive purchase from MSE Sector. Q.No.18: Whether this policy is applicable for works/ trading activities also? Ans. Policy is meant for procurement of only goods produced and services rendered by MSEs. However, traders/ distributors/ sole agent/ Works Contract are excluded from the purview of Public Procurement Policy for MSEs Order,2012. Q.No.19: Whether the Policy is applicable for MSEs registered with NSIC? Ans. The Policy is applicable for all MSEs registered under Udyam Registration and Udyog Aadhar Memorandum (valid till 31.03.2022). Q.No.20: Whether the Policy provides benefits for exemption from Security Deposit/ Performance Bank Guarantee to MSEs? Ans. No, there is no exemption on Security Deposit/ Performance Bank Guarantee under the Policy. Q.No.21: Can MSEs quoting a price within the band L1+15% be given complete supply to tender in case tender item cannot be split /divided? Ans. In case of tender item cannot be split or divided, etc. the MSE quoting a price within the band L1+15% may be awarded for full/ complete supply of total tendered value to MSE, considering the spirit of the Policy for enhancing Govt. Procurement from MSEs. Q.No.22: Which are the MSEs owned by SC/ST enterprises? Ans. The definition of MSEs owned by SC/ ST is as given under: (a) In case of proprietary MSE, proprietor(s) shall be SC /ST. (b) In case of partnership MSE, the SC / ST partners shall be holding at least 51% shares in the unit. (c) In case of Private Limited Companies, at least 51% share shall be held by SC/ST promoters. Q.No.23: Can the Central Government Ministries/ Departments/ CPSEs who have a meagre value of total procurement be exempted from the Policy? Ans. The Policy is applicable to all the Central Government Ministries / Departments / CPSEs, irrespective of the volume and nature of procurement.
What This Means
Para 10 of the Manual for Procurement of Consultancy Services addresses several frequently asked questions (FAQs) regarding the Public Procurement Policy for Micro and Small Enterprises (MSEs). It clarifies various aspects of the policy, including grievance redressal, exemptions, applicability, and benefits for MSEs. This section is crucial for government departments and Central Public Sector Enterprises (CPSEs) to understand their obligations and ensure compliance with the MSE procurement policy. It also provides information on how the policy is enforced and where to find more details.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •A grievance cell called 'CHAMPION Portal' is established in the Ministry of MSME to address non-compliance issues.
- •Defence armament imports and specific defence equipment are excluded from the 25% procurement goal for the Ministry of Defence.
- •The policy is mandatory under the MSMED Act, 2006 and applies to goods and services from MSEs, excluding traders, distributors, and works contracts.
- •MSEs quoting within L1+15% can be awarded the entire tender if splitting the item is not feasible.
- •The policy is applicable for all MSEs registered under Udyam Registration and Udyog Aadhar Memorandum (valid till 31.03.2022).
Practical Example
The Ministry of Rural Development is procuring consultancy services for a rural electrification project. During the tender process, 'Shakti Enterprises', an MSE owned by an SC entrepreneur, quotes a price within the L1+15% band. The tender committee determines that the project cannot be split due to its integrated nature. According to Para 10, the Ministry can award the entire contract to Shakti Enterprises, even if they are not the lowest bidder, as long as their price falls within the specified range and splitting the tender is not possible. This helps the Ministry meet its MSE procurement targets and supports SC/ST entrepreneurs. If another department fails to prioritize MSEs, Shakti Enterprises can file a grievance through the CHAMPION Portal.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Where can I find the complete details of the Public Procurement Policy for MSEs?▼
Is the Public Procurement Policy for MSEs optional or mandatory?▼
Are there any exemptions from the Public Procurement Policy for MSEs?▼
What is the grievance redressal mechanism for non-compliance with the policy?▼
Does the policy provide any exemption on Security Deposit/ Performance Bank Guarantee to MSEs?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 10 of the Manual for Procurement of Consultancy Services, which portal has been established to address grievances related to non-compliance with the Public Procurement Policy for MSEs?
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