Summary:

The circular provides a policy clarification regarding relaxation of prior experience and turnover criteria for Startups and Micro & Small Enterprises (MSEs) in public procurement. It references the Public Procurement Policy for MSEs (2012) and aligns with the objectives of the Startup India initiative.

Major Highlights:

1. Mandatory Procurement from MSEs:
• As per the Public Procurement Policy for MSEs Order 2012, 20% of total annual procurement by Central Ministries/Departments/PSUs must be from MSEs, effective 1st April 2015.
2. Support to Startups & MSEs:
• Recognizes that Startups (often MSEs) may lack prior turnover or experience but still possess the technical capacity to fulfill orders meeting required standards.
3. Relaxation Provision:
• Under Para 16 of the 2012 Policy, all Central Ministries/Departments/PSUs are allowed to relax eligibility criteria regarding prior experience and turnover for MSEs and Startups, provided they comply with technical and quality requirements.
4. Policy Intent:
• This relaxation is aimed at promoting innovation, encouraging entrepreneurship, and providing MSEs a fair opportunity to participate in public procurement, even without prior credentials.
5. Approval & Authority:
• Issued with approval from the Union Minister of MSME.