• The government gave its nod to a procurement policy under which 20 percent of goods purchased by central ministries and public sector undertakings would be from micro and small enterprises (MSEs). 

  • The  policy would become mandatory three years from now. 

  • Government departments not conforming to the mandatory procurement would be required to provide reasons to a review committee set up for the purpose.

  • MSEs include the khadi, village and coir industries; they constitute a major part of the sector that contributes significantly to GDP, manufacturing output and exports.

  • Under the policy, every central ministry and PSU will set an annual goal for procurement from the MSE sector at the beginning of the year with the objective of achieving overall procurement goal of minimum 20 percent of the total purchases of products and services from the MSEs. 

  • Of the 20 percent target, a sub-target of four percent -- that is 20 percent of the 20 percent -- would be earmarked for procurement from the MSEs owned by SC/ST entrepreneurs