MSME Sambandh: Government surpasses procurement target in FY21; five ministries beat the 25 percent target for financial year

The ministry said the requirement for registering on the portal has been simplified further.

As FY21 comes to end, the government has surpassed its annual procurement target of 25 percent from micro and small enterprises (MSEs), as per monitoring portal MSME Sambandh.

Central ministries, departments, and central public sector enterprises (CPSEs) have made an overall procurement worth Rs. 32,286 crores from MSEs for the financial year, which stood at 30.90 percent, benefiting over 1.38 lakh MSEs, as of March 31.

Procurement from MSEs in FY21 is up from 30.17 percent procurement worth Rs. 39,631 crores in FY20 and 26.32 percent procurement from MSEs worth Rs. 40,399 crores in FY19.

In FY18, the government made a procurement worth Rs. 26,357 crores, which was 23.11 percent of the overall accretion.

In 2018, the government had revised the annual public procurement target for government organisations from MSEs to 25 percent from 20 percent stipulated earlier.

Further, as per the data available on the monitoring portal, out of the 54 ministries that are listed on MSME Sambandh, only five have surpassed the 25 percent target in FY21.

The five ministries, which have outperformed the limit include the Ministry of Defence, Ministry of Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy (AYUSH), Ministry of Commerce and Industry, Ministry of Housing and Urban Affairs and Ministry of Power.

Despite surpassing the procurement target of 25 percent from MSEs in FY21, the annual procurement target from SC/ST and women entrepreneurs, which are earmarked at 4 percent and 3 percent respectively, has continued to miss the target yet again for the third consecutive financial year.

The procurement from women and SC/ST entrepreneurs stood at Rs. 583 crore and Rs. 587 crores respectively in FY21.

The procurement share for both women and SC/ST entrepreneurs was only 0.56 percent in FY21 against the 3 percent and 4 percent procurement target.

MSME Sambandh was launched by the government in December 2017 for effective implementation of the procurement policy and to keep a record of public accretion made by government departments and ministries.