Parliament Question: MSEs Procurement Targets

**Executive Summary** This document provides the response to an unstarred question in Lok Sabha regarding Micro and Small Enterprises (MSEs) procurement targets for the financial year 2025-26. It details the extent to which Union Ministries and Departments exceeded the targets, names the top-performing Ministries, and outlines steps taken to enhance procurement from MSEs. The information is based on data available on the MSME Sambandh Portal until January 27, 2026. **Key Points / Main Content** * **Achievement of Procurement Target:** * Union Ministries and Departments, including enterprises under their administrative control, have surpassed the prescribed procurement target of 25% from MSEs. * Procurement from MSEs during FY 2025-26 amounted to Rs. 76,106.85 crore (47.38%). * **Top Performing Ministries (Procurement Value and Percentage):** * Ministry of Petroleum and Natural Gas: Rs. 22618.12 crore (49.65% of total procurement) * Ministry of Defence: Rs. 11152.08 crore (38.28% of total procurement) * Ministry of Power: Rs. 10120.16 crore (63.74% of total procurement) * **Enhancement of Procurement from MSEs:** * MSME-SAMBANDH Portal launched on December 8, 2017, to actively monitor procurement by Central Government entities. * The Ministry of MSME is actively engaged with the Department of Public Enterprises and the Ministry of Finance to improve coordination with CPSEs for achieving the targets under the policy. The Ministry of MSME also issues communications and clarifications on the Public Procurement Policy for MSEs. * Government e Marketplace (GeM) is used for procurement by Ministries/Departments/CPSEs, with regular follow-up for supporting SC/ST and Women entrepreneurs. * Vendor Development Programmes under the Procurement and Marketing Support Scheme provide a platform for networking between MSEs and CPSEs, as well as other stakeholders, with special programmes for SC/ST and Women-owned MSEs. * The Special Credit Linked Capital Subsidy Scheme (SCLCSS) under the National SC-ST Hub Scheme promotes the establishment of new enterprises by SC/ST entrepreneurs and their capacity building. * **Availability of Procurement Details:** * Year-wise procurement details of Ministries/Departments and Central Public Sector Enterprises (CPSEs) are available on the MSME Sambandh Portal: https://sambandh.msme.gov.in **Impact Analysis** **Union Ministries and Departments including enterprises under their administrative control** * **Impact:** Departments need to continue meeting and exceeding MSE procurement targets, monitor procurement performance on the MSME Sambandh Portal, and utilize GeM for procurement, with a focus on supporting SC/ST and women entrepreneurs. * **Action Required:** Enhance monitoring and coordination with CPSEs, promote SC/ST and women-owned MSEs through GeM, and participate in Vendor Development Programmes. **Ministry of MSME** * **Impact:** The Ministry is responsible for actively monitoring procurement, facilitating coordination, and providing support to achieve MSE procurement targets. * **Action Required:** Continue monitoring procurement through the MSME-SAMBANDH Portal, engage with the Department of Public Enterprises and the Ministry of Finance, issue clarifications on the Public Procurement Policy, and support SC/ST and women entrepreneurs. **Micro and Small Enterprises (MSEs)** * **Impact:** MSEs have the opportunity to increase their participation in government procurement, gaining access to a larger market and potentially benefiting from support schemes. * **Action Required:** Register on GeM, network with CPSEs through Vendor Development Programmes, and explore support schemes like SCLCSS to enhance their capacity and competitiveness.

Key Entities Referenced