J&K Govt deptts to procure 25% goods, services from MSEs

Jammu: All J&K departments and Public Sector Undertakings (PSUs) will procure a minimum of 25 percent of the total overall annual procurement of goods or services from Micro and Small Enterprises (MSEs).

Further, out of this 25 percent target, three per cent procurement will be made from MSEs owned by women.

Earlier, it was stipulated for all the J&K government departments, PSUs and aided Institutions to procure a minimum of 20 percent of the total overall annual procurement of the Goods or Services, produced and provided by Micro and Small Enterprises (MSEs).

Amendment has been made in line with the amended Public Procurement Policy for the MSEs of the Union Ministry of Micro, Small and Medium Enterprises.

On January 11, 2020, J&K Finance Department had issued circular instructions regarding procurement of Goods and Services by government departments and PSUs, stipulating a minimum of 20 percent procurement of the total overall annual procurement of the goods or services from Micro and Small Enterprises.

The instructions were issued on the basis of similar instructions notified by the Ministry of Micro, Small, & Medium Enterprises for procurement through MSMEs vide SO 581 (E) dated March 23, 2012.

However, the Ministry of Micro, Small & Medium Enterprises, Government of India vide S O 5670(E) dated November 9, 2018 amended the Public Procurement Policy for the Micro and Small Enterprises (MSEs) Order, 2012. As per the amendment, throughout the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012, the figures and word "20 percent" were substituted by the figures and word "25 percent."

As a special provision for Micro and Small Enterprises owned by women, out of the total annual procurement from MSEs, 3 percent from within the 25 percent target was earmarked for procurement from MSEs owned by women.

Now, the J&K government has also issued circular instructions for all its Administrative Departments to follow the amended Public Procurement Policy of the concerned union ministry while making procurement of Goods and Services.

“Every Department or Public Sector Undertaking shall procure a minimum of 25 percent of the total overall annual procurement of Goods or Services from Micro and Small Enterprises. Out of the total annual procurement from Micro and Small Enterprises, 3 percent from within the 25 percent target shall be earmarked for procurement from Micro and Small Enterprises owned by women,” the instructions specified.