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MSME Ministry Reviews 4% SC/ST Procurement by CPSEs

The MSME Ministry held a round table with 30 CPSEs to review the mandated 4% procurement from SC/ST micro and small enterprises under the Public Procurement Policy.

By Published · 2 min read
MSME Ministry Reviews 4% SC/ST Procurement by CPSEs

Why in News

On 10 November 2026 the Ministry of Micro, Small and Medium Enterprises reported on a round table it held with 30 Central Public Sector Enterprises to review the mandated 4 per cent procurement from SC/ST micro and small enterprises.

The Ministry of Micro, Small and Medium Enterprises held a round table discussion with Central Public Sector Enterprises (CPSEs) on 5 November 2026 at the Dr. Ambedkar International Centre in New Delhi. The purpose was to take stock of how far CPSEs have gone in meeting the 4 per cent procurement mandated from SC/ST micro and small enterprises under the Government's Public Procurement Policy.

Who took part

The meeting was chaired by Ms. Mercy Epao, Joint Secretary in the Ministry of MSME. Shri Ajit Chavan, Additional Chief Executive Officer of the Government e-Marketplace, and Dr. S. S. Acharya, Chairman-cum-Managing Director of the National Small Industries Corporation, took part along with senior officers of the Ministry, the Department of Public Enterprises and NSIC. In all, 30 CPSEs joined the discussion, among them BHEL, BEL, NTPC, AAI, BEML and Coal India Limited.

What the figures show

The Joint Secretary said the handholding done under the National SC-ST Hub (NSSH) Scheme has produced a steady rise in the share of SC/ST micro and small enterprises in public procurement. Measured against the position when the scheme began, public procurement from these enterprises had grown more than 36 times by the financial year 2025-26.

New steps announced

  • A new initiative called the Entrepreneur Awareness and Special Vendor Development Program, meant to build awareness among SC/ST enterprises and connect them with CPSEs.
  • CPSEs were asked to draw up internal action plans to meet the target, and to help with vendor registration and enlistment, matchmaking of products and services, regional contact with SC/ST enterprises and continued handholding.
  • The Government e-Marketplace has added dedicated marketplace filters so that SC/ST sellers can be identified, and has appointed a nodal officer whose services CPSEs were urged to use.

What came out of the discussion

The round table was built around the difficulties CPSEs report and the sharing of practices that have worked, with attention to tighter coordination between the National SC-ST Hub offices, the Government e-Marketplace and the enterprises themselves. Representatives of the better performing CPSEs spoke to those lagging behind so that gaps could be identified and addressed. The Additional CEO of the e-Marketplace stressed the value of bringing sellers from a wider spread of sectors, services and industry verticals in particular, so that procurement opportunities are shared more evenly. Participants also looked at vendor development programmes, capacity building and digital facilitation as ways of raising procurement from SC/ST and women-owned micro and small enterprises.

Important Facts

EventRound table discussion of the MSME Ministry with CPSEs
Date and venue5 November 2026, Dr. Ambedkar International Centre, New Delhi
Mandate reviewed4 per cent procurement from SC/ST MSEs under the Public Procurement Policy
Chaired byMs. Mercy Epao, Joint Secretary, Ministry of MSME
CPSEs present30, including BHEL, BEL, NTPC, AAI, BEML and Coal India Limited
SchemeNational SC-ST Hub (NSSH) Scheme
Growth reportedMore than 36 times rise in procurement from SC/ST MSEs by FY 2025-26 since inception
New initiativeEntrepreneur Awareness and Special Vendor Development Program
GeM stepsDedicated marketplace filters for SC/ST sellers and a nodal officer for handholding

Exam Point of View

Remember the mandated share of 4 per cent procurement from SC/ST micro and small enterprises under the Public Procurement Policy, the scheme that handholds them (National SC-ST Hub), the date and venue of the round table, the number of CPSEs that attended (30), the growth of more than 36 times by the financial year 2025-26, and the new Entrepreneur Awareness and Special Vendor Development Program. GeM and NSIC are the two bodies to link with this story.

Practice Questions

Q1.EconomyMedium

Under the Government's Public Procurement Policy, what share of procurement is mandated from SC/ST micro and small enterprises?

  1. A.3 per cent
  2. B.4 per cent
  3. C.20 per cent
  4. D.25 per cent
Show answer
Correct answer: B. 4 per cent

The round table with Central Public Sector Enterprises was convened precisely to monitor how far they have met the mandated four per cent sourcing from micro and small enterprises owned by Scheduled Caste and Scheduled Tribe entrepreneurs.

Q2.EconomyMedium

Which scheme of the MSME Ministry handholds SC/ST micro and small enterprises for public procurement?

  1. A.National SC-ST Hub Scheme
  2. B.Prime Minister's Employment Generation Programme
  3. C.Credit Guarantee Fund Trust for Micro and Small Enterprises
  4. D.Udyam Registration
Show answer
Correct answer: A. National SC-ST Hub Scheme

The Joint Secretary told the round table that the promotion and handholding done under this scheme has steadily raised the share of SC/ST micro and small enterprises in public procurement, and the scheme's field offices are the ones being asked to coordinate more closely with the Government e-Marketplace and with…

Frequently Asked Questions

What procurement share is mandated from SC/ST enterprises?

Under the Government's Public Procurement Policy, Central Public Sector Enterprises must source 4 per cent of their procurement from micro and small enterprises owned by Scheduled Caste and Scheduled Tribe entrepreneurs. The round table on 5 November 2026 reviewed how far CPSEs have met it.

Which scheme supports SC/ST micro and small enterprises?

The National SC-ST Hub Scheme of the Ministry of MSME. Measured from the scheme's inception, public procurement from SC/ST micro and small enterprises had grown more than 36 times by the financial year 2025-26.

How many CPSEs attended the round table?

A total of 30 Central Public Sector Enterprises, among them BHEL, BEL, NTPC, AAI, BEML and Coal India Limited. The meeting was chaired by Ms. Mercy Epao, Joint Secretary in the Ministry of MSME.

What is the Entrepreneur Awareness and Special Vendor Development Program?

It is a new initiative announced at the round table to build awareness among SC/ST micro and small enterprises and to help them network with CPSEs, alongside support for vendor registration, product matchmaking and regional contact.

Sources