MSME MINISTRY to Revise List of MSE Reserved Products Portfolio for Govt Procurement

Government of India, Ministry of MSME is revising the list of 358 items that are reserved for purchase from Micro and Small Enterprise (MSEs) by central government agencies.

The current list contains low tech mass produced items from engineering and electrical  to chemical to food such as  agricultural implements, air/room coolers, electrical transmission line products,  conductors, barbed, papad, brooms, cotton bandage, belts, canvas  among others.

According to a senior official form Ministry of MSME, many items are no more in use and have become redundant like glue, blotting paper, Holdall, Tin Boxes for postage stamp etc whereas a number of new products are used in offices now.

“There is no use keeping products that people don’t use anymore. We are revising the list to eliminate redundant items and invite suggestions from MSME associations for addition of new items in the list which are manufactured by MSE sector especially labour intensive ones”, he added.

The purchase reservation for 358 items is a distinct policy in operation for decades now.

The Central Government has also notified Public Procurement Order 2012 which makes it mandatory for central agencies to procure at least 20% of their purchases from MSEs. The policy also stipulates 4% procurement from SC/ST entrepreneurs.

“The push for 20% set-aside by the Ministry of MSME is yielding results and 116 Central Public Sector Undertaking have reported their procurement figures in the Ministry’s dashboard at https://sambandh.msme.gov.in . However, so far as the MSE purchase reservation policy is concerned, neither it is followed by most of CPCEs nor reported. Perhaps a similar push is needed for implementation of the purchase reservation also after revising the list“ said Dinesh Tripathi, President of Federation  Indian Micro and Small and medium Enterprises (FISME).

The list of 358 items reserved for purchase from MSEs is available at the site of DCMSME:  http://www.dcmsme.gov.in/schemes/listof358itemsreserved.pdf