Ease of Doing Business for MSMEs: Central ministries, departments, and central public sector enterprises have produced the highest procurement from ladies-owned micro and little enterprises (MSEs) in FY21 because the launch of the public procurement policy monitoring platform MSME Sambandh in December 2017 by the government. According to the information sourced from MSME Sambandh, the government has currently bought goods and services worth Rs 556.82 crore from 3,586 ladies-owned MSEs as of March 4, 2021, in the existing economic year vis-à-vis Rs 393.43 crore worth procurement in FY20 from 3,655 ladies MSEs. The procurement for FY19 stood at Rs 232.56 crore from 1,410 ladies MSEs even though for the duration of the 4 months of FY18 (December 2017 – March 2018), zero procurement was produced from ladies MSEs.
FY21 procurement so far was 1.4X of FY20 procurement and 2.4X of goods bought from ladies MSEs in FY19. The annual procurement target for government purchasers from MSEs was revised in 2018 to 25 per cent from earlier 20 per cent of their total annual purchases. The 25 per cent procurement integrated a 4 per cent target from MSEs owned by SC/ST entrepreneurs and a 3 per cent target from ladies-owned MSEs.
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However, the purchasers have been unable to meet the annual procurement target from SC/ST and ladies entrepreneurs even as the general aim of 25 per cent was achieved with 26.32 per cent procurement from MSEs in FY19 and 31.69 per cent procurement in FY20. In contrast, procurement share of SC/ST entrepreneurs stood at only .54 per cent and .56 per cent for FY19 and FY20 respectively. The procurement for the duration of the two FYs from SC/ST entrepreneurs was worth Rs 824.71 crore from 4,587 MSEs and Rs 692.76 crore from 6,330 MSEs. Likewise, the share of ladies-owned MSEs stood at .15 per cent in FY19 and .32 per cent in FY20.
Among 54 ministries listed on the MSME Sambandh portal, the highest procurement from MSEs in FY21 so far has been produced by the Ministry of Petroleum and Natural Gas worth Rs 14,452 crore followed by the Ministry of Power with MSE procurement worth Rs 3891 crore, Ministry of Defence worth Rs 2,769 crore, Ministry of Heavy Industries and Public Enterprises worth Rs 2,227 crore, Ministry of Steel worth Rs 1,915 crore, and so on.