On 23rd March, 2012, through Notification No 503, Ministry of Micro, Small and medium Enterprises published a order in The Gazette of India: Extraordinary; defining the Public Procurement Policy for Micro and Small Enterprises (MSEs). The order came in to effect from 1St April 2012.
Through the order it was mandated that all Central Ministries/departments/Public Sector Undertakings (PSU) shall target to procure 20% of their annual budget, through Micro and Small Enterprises (MSE). It was made mandatory from 1St April 2015 to procure 20% from MSE. There are 358 items which were kept aside as exclusive preserve of micro and small enterprises.
In order to take advantages of the benefits, the MSE must be registered with any of the agencies:
District Industries Centers, Khadi and Village Industries Commission, Khadi and Village Industries Board, Coir Board, National Small Industries Corporation, Directorate of Handicrafts and Handloom, Any other body specified by Ministry of Micro, Small and Medium Enterprises;
Since Indian Railway is a Central Ministry, they also published ( Through Railway Board) the Notification dated 5Th July 2012, No: 2010/RS(G)/363/1 with regard to price preference to be given to MSE.
Though the complete policy can be found on various websites, below are the salient features of the policy:
Free availability of Tender Document
No Need to pay Earnest Money Deposit (EMD)
Even if MSE quote 15% more than L1+15%, 20% of the the total order will be given to MSE provided they match L1 price. where to publish tender.