Clarification of Definition of MSE Owned by SC/ST Entrepreneurs

The Government introduced Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 which is notified under MSMED Act 2006. The Public Procurement Policy mandates every Central Ministries/Departments/CPSUs to set an annual goal for procurement from the MSE sector from the 1st April 2012 with objective of achieving an overall procurement of minimum 20% of their total annual purchases value from products produced/services rendered by MSEs within a period of three years. The Policy also earmarked 4% share out of this 20% Procurement from MSEs owned by SC/ST entrepreneurs.

Under the provision of para 16 of aforesaid policy, definition of MSEs owned by SC/ST is clarified by the Ministry of MSME as:

a. In case of proprietary MSE, proprietor(s) shall be SC/ST.

b. In case of partnership MSE, the SC/ST partners shall be holding at least 51% shares in the unit.

c. In case of Private Limited companies, at least 51% share shall be held by SC/ST promoters.

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