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Public Procurement Policy (PPP) for MSEs Order, 2012

  • To provide marketing support to Micro and Small Enterprises (MSEs), Ministry of MSME has notified the Public Procurement Policy for Micro and Small Enterprises (MSEs), Order, 2012 under the MSMED Act, 2006 which is effective from 1st April 2012 and has become mandatory w.e.f. April 2015.
  • Amendment to this policy mandates 25% annual procurement from MSEs by Central Ministries /Departments/Central Public Sector Enterprises (CPSEs) including 4% from MSEs owned by SC/ST and 3% from MSEs owned by Women entrepreneurs.

Eligibility/Applicability

  • The Public Procurement Policy is applicable for manufacturing of goods and services rendered by MSEs.
  • Traders/ sole agent/ distributor are excluded to avail the benefits of Public Procurement Policy and works contract is not covered under the purview

Nature of Assistance

The benefits/facilities provided to all registered MSEs are:-

  • Tender set free of cost.
  • Exemption from the payment of Earnest Money Deposit.
  • In tender, participating MSEs quoting price within price band of L1+15% shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where price is from someone other than a MSE and such MSE shall be allowed to supply at least 25% of the total tendered value.
  • 358 items reserved for exclusive procurement from MSEs.
  • Relaxation of norms for start- ups and the MSEs in Public Procurement Policy on prior experience- prior turnover criteria.

How to Apply

The MSEs registered with District Industries Centre (DIC) or Khadi & Village Industries Commission (KVIC) or Khadi & Village Industries Board (KVIB) or Coir Board or National Small Industries Commission (NSIC) or Directorate of Handicrafts and Handlooms or Udyog Aadhar Memorandum (Valid till 31.03.2021)/ Udyam Registration Certificate (w.e.f. 01.07.2020) or any other body specified by Ministry of MSME are eligible to avail the benefits of PPP. In future only Udyam registration would be made mandatory for any MSME desirous of obtaining benefits under scheme/ programme of the Ministry of MSME.

New Initiative

  • Sambandh Portal was Launched on 8th December, 2017.
  • Updated and timely information on Public procurement.
  • To monitor the procurement done by the Ministries/Departments and CPSEs.
  • Enable CPSEs to upload list of products/services required.
  • To upload monthly data.
  • Dashboard providing summary of Procurement.
  • Portal can be accessed through the link provided: MSME SAMBANDH

Whom to Contact

Director (PPP), Room No. 730, O/o DC(MSME), 7th Floor A ‘Wing’, Nirman Bhawan, Maulana Azad Road, New Delhi



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