In exercise of the powers conferred by section 11 of the Micro, Small and Medium Enterprises Development Act,

## Report on the Public Procurement Policy for Micro and Small Enterprises (MSEs) Amendment Order, 2021 **1. Executive Summary:** This report analyzes the Public Procurement Policy for Micro and Small Enterprises (MSEs) Amendment Order, 2021, as published in the Gazette of India on August 11, 2021. This amendment modifies the original 2012 policy, focusing on vendor development for MSEs and restructuring the composition of the committee overseeing the policy. Key changes include the removal of a specific paragraph from the original policy, emphasizing vendor development through initiatives like Vendor Development Programmes and Buyer-Seller Meets via the GeM Portal, and altering the composition of the monitoring committee. The amendment aims to enhance the participation of MSEs in public procurement by improving vendor capabilities and streamlining oversight. **2. Introduction:** This report provides an informative overview and analysis of the Public Procurement Policy for Micro and Small Enterprises (MSEs) Amendment Order, 2021. The analysis is based solely on the text of the official notification published in the Gazette of India on August 11, 2021. The purpose of this report is to inform stakeholders about the specific changes introduced by this amendment. **3. Policy Overview:** * This is an amendment to the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012. * Core Objective(s) (inferred from provided text): To further improve the participation of MSEs in public procurement by 1) enhancing vendor development and 2) restructuring the composition of the oversight committee. **4. Background and Rationale:** This amendment likely seeks to address perceived shortcomings in the original 2012 policy regarding vendor development and policy oversight. The emphasis on Vendor Development Programmes and Buyer-Seller Meets suggests a need to actively cultivate MSE vendor capabilities. Furthermore, the change in committee composition indicates a desire to improve the effectiveness and representation of different government bodies in monitoring and guiding the policy. The removal of specific clauses from the original policy might be due to their perceived ineffectiveness or redundancy. **5. Key Provisions / Changes:** This section details the specific changes introduced by the amendment: * **Change 1:** Paragraph 3, subparagraph 1 of the 2012 Order is omitted. The impact of this specific omission cannot be determined from the provided text alone without knowing the content of that original paragraph. * **Change 2:** Paragraph 7 of the 2012 Order is substituted with a new paragraph focusing on developing Micro and Small Enterprises vendors. * **New Rule/Provision:** Central Ministries, Departments, and Public Sector Undertakings are now required to take necessary steps to develop vendors by organizing Vendor Development Programmes or Buyer-Seller Meets focused on developing Micro and Small Enterprises for procurement through the GeM Portal. * **Effect of Change:** This change places a direct responsibility on government entities and PSUs to actively engage in vendor development activities, specifically promoting MSE participation through the GeM portal. This signifies a more proactive approach to including MSEs in public procurement. * **Change 3:** Paragraph 8 of the 2012 Order is omitted. The impact of this specific omission cannot be determined from the provided text alone without knowing the content of that original paragraph. * **Change 4:** Paragraph 2 of the Annexure to the 2012 Order, relating to the composition of the monitoring committee, is replaced. * **New Rule/Provision:** The committee's composition is revised to include: * Secretary, Ministry of MSME (Chairman) * Representative of Chief Executive Officer, Niti Aayog (Member, not below Additional Secretary) * Secretary, Department of Public Enterprises (Member) * Chief Executive Officer, Government eMarketplace (Member) * Representative of Secretary, Department of Commerce, Ministry of Commerce and Industry (Member, not below Additional Secretary) * Representative of Secretary, Department of Expenditure, Ministry of Finance (Member, not below Additional Secretary) * Representative of Chairman, Railway Board, Ministry of Railways (Member, not below Additional Secretary) * Additional Secretary and Development Commissioner MSME (Member Secretary) * **Effect of Change:** This change brings more high-ranking officials from key government departments into the committee. This likely aims to improve coordination and ensure that the policy aligns with broader economic and developmental goals. The inclusion of the CEO of GeM signifies the importance of the portal in MSE procurement. **6. Target Audience and Stakeholders:** Based on the provided text, the primary target audience and stakeholders are: * Micro and Small Enterprises (MSEs) seeking to participate in public procurement. * Central Ministries, Departments, and Public Sector Undertakings (PSUs) responsible for procurement. * The Ministry of MSME, responsible for overseeing the policy. * The Government e-Marketplace (GeM) platform. * Niti Aayog, Department of Public Enterprises, Department of Commerce, Ministry of Commerce and Industry, Department of Expenditure, Ministry of Finance, and the Railway Board, Ministry of Railways. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** Central Ministries, Departments, Public Sector Undertakings, and the Ministry of MSME are primarily responsible for implementing the amended policy. The restructured committee will likely play a key monitoring and guidance role. * **Timelines/Procedures:** The amendment came into force on the date of its publication in the Official Gazette (August 11, 2021). Specific timelines or detailed procedures for Vendor Development Programmes and Buyer-Seller Meets are not specified in the provided text and would likely be defined by the implementing agencies. * **Amendment-Specific Implementation:** Implementing agencies need to establish or enhance existing Vendor Development Programmes and Buyer-Seller Meets, ensuring they are focused on MSEs and integrated with the GeM platform. The restructured committee needs to be formally constituted and begin its oversight activities. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * Increased participation of MSEs in public procurement through enhanced vendor capabilities. * Improved quality and competitiveness of MSE vendors. * Greater utilization of the GeM portal for MSE procurement. * More effective monitoring and implementation of the Public Procurement Policy for MSEs due to the restructured oversight committee. * Better coordination between different government departments regarding MSE development. **9. Conclusion:** The Public Procurement Policy for Micro and Small Enterprises (MSEs) Amendment Order, 2021, represents a significant step towards strengthening the role of MSEs in public procurement. By emphasizing vendor development and restructuring the oversight committee, the amendment aims to create a more supportive and effective ecosystem for MSE participation. The success of this amendment will depend on the diligent implementation by the responsible agencies and the active participation of MSEs. While the document is limited and key context is missing from the text alone, the focus on vendor development and a more comprehensive committee structure appear to be the key components.

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