Subject: - Relaxation of Norms for Startups Medium Enterprises in

N o. D PE/7

(4ll

2017

-F

i n.

Government of lndia

Ministry

of Heavy lndustries & Public Enterprises

Department

of Public Enterprises

Public Enterprises

Bhawan

Block No.14, CGO

Complex

Lodhi Road,

New

Delhi-110003

Dated

8th

November, 2016

OFFICE

MEMORANDUM

Subject:

-

Relaxation of

Norms

for

Startups

Medium

Enterprises

in Public

Procu rement Rega

rd ing Prior Experience-Prior

Tu rnover criteria-reg.

The undersigned

is

directed

to enclose

herewith

a copy of

the O.M

No

F.2Ot2t2O1a-PPD(pt.)

dated

20th September,

2016 along

with a copy

of OM

bearing

the same

number dated

25th July,

2016

(with

enclosure)

on the above

subject

issued

by

Ministry of

Finance, Department

of

Expenditure

(Procurement

Policy

Division).

All

Ministries/Departments

concerned

are advised to

direct

their CPSEs

to follow the

directions

mentioned

therein

for implementation.

2.

This issues

with the approval

of

Secretary,

DPE.

1.

2.

3.

4.

(Kalyani

Mishra)

Director

Te|.24362061

Encl:

As above

All Secretaries

of

Administrative

Ministries/Departments

All CMD of

CPSEs

Ministry

of Finance,

Department

of

Expenditure

w.r.t. Letter

No. F.20/212014-

PPD

(Pt.)

dated

20th September,2016

Sr.

Director NIC

with a

request to

up

load in-office

website of DPE

Vr/

No

.F .20 12

fi20

1 4-PPD(Pt.

)

Ministry

of

Finance

Department

of ExPenditure

Procurement

PolicY

Division

516,

Lok

Nayak

Bhawan,

New Delhi

Dated

the

20th SePtember,

2016

OFFICE MEMORANDUM

Subject

Relaxation

of Norms

for Startups

Medium

Enterprises

in

Public

Procurement

regarding

Prior Experience

-

Prior

Turnover criteria.

The

undersigned

is

directed

to

refer to

this Department

O.M.

of

even

number

dated

25th

July,

2016,

wherein

it

was

clarified

that all

Central

Ministries/

Departments

may

relaxcondition

of

prior

turnover

and

prior

experience

in

public

procurement

to all

Start-ups

[whether

Micro &

Small

Enterprises

(MSEs)

or

otherwiseJ

subJect

to

meeting

of

quality

and technical

specifications

in

accordance

with the

relevant

provisions

of

GFR,

2005.

2.

A

doubt

has arisen

if it

makes

optionalfor

Central

Ministries/

Departments

to

relax

condition

of

prior

experience

bnd

prior

turnover

in

public procurement to

Startups.

ln this

regard,

it is again

clarified

that

normally

for alt

public

procurement,

the

Central

Ministries/

Departments

have

to ensure

that criteria

of

prior

turnover

and

prior

experlence

for

all Startups

is

relaxed

subjeci

to

their

meeting

of

quality

and

technicalspeciftcations.

..

3,

However,

there

may be

circumstances

(like

procurement

of

items related

to

public

safety,

health,

critical

securityloperations

and

equipments,

etc.)

where

procuring

entities

may

prefer

the

vendors

to

have

prior

experience

rather than

giving

orders

to new entities.

For

such

procurements, wherever

adequate

justification

exists,

the

procuring

entities

may

not

relax the

criteria of

prior

experience/

tumover

for the

$tartups.

4.

This issues

with

the approval

of

Finance

Secretary.

Yrty

(

Vinayaft

T. Likhar

)

Under Secretary

(PPD)

Tel/Fax

-

24621305

"

E-mail-vinavak.lilqhar,[email protected]

To

The

Secretaries

of

all

Central

Government

Ministries/

Departments.

Copy

to:

-

(i)

FinancialAdvisors

of

all

Central

Government

Ministries/

Departments.

(ii) The Secretary,

Department

of

Public

Enterprises,

Room

No.305,

Block

No.14, CGO

Complex,

New

Delhi-110

003

with

a

request to

issue

appropriate

instructions

to

Central

Public

Sector

Undertakings

(CPSUS)

to

implement

#5 of

"Action

Plan

for Startup

lndia"'

\

a)-

No.F .2AE20

1

4-PPD(PI.)

Minietry

of

Finance

Department

of Expenditure

Procurement Policy Divis

ion

516,

Lok

Nayak

Bhawan,

NEw Delhi

Dated the 25th July,

2016

0FFICE

MFItrlp RA]l.p Ul-vI

Subject-

Relaxation of Norms for Startups

Medium

Enterprises

in Public

Procurement

regarding

Prior

Experience

-

Prior

Turnover criteria.

The Government

of lndia has

announced

'startup

lndia' initiative for

creating a

conducive

ecosystem

for the

growth

of

Startups

in lndia.

The

Startups

are defined lri

Annexure-A

of the

"Action

Plan

for

Etartups

lndia".

The sarne is

evailable

on the

website of

Department

of

lndustrial

Policy

and

Promotion

(DIPP),

Mlnistry

of

Commerce & lndustry.

2.

Ministry

of"Micro,

$mall

&

Medium

Enterprises

(MSMES)

vide Policy

Circular

No.1(2)(1y2016-MA

dated

10th March,2016

has clarified that all

Central

Ministries

/

Departments / Central

Public $ector

Under{akings

(CPSUS)

rnay

relax

condition

of

prior

turnover and

prior

experience

wlth respect

of

Mioro

&

Small

Enterprises

(MSEs)

in

gll

public

procurements

subject to

meeting

of

quality

and teclinical

specifi cations.

3. As

per

Rule

160(iXa) of

GFR,

2005, there

is already

a

provision

that

the

bidding document

ahould

contain criteria

for eligibllity

and

qualification

to be

met

by the bidders

such

as minimum level

of experience,

pasi

performance,

technical

capablllty,

rnanufacturing

facilities

and

financial

position

etc, ln

view of

above, it

is

further

clarified

that

all Central Ministries

I

Departments

may relax

condition of

prior

turnwer

and

prior

experience

in

public

procurernent

to all

Startups

(whether

MSEs or

otherwise)

subject

to

meeting

of

quality

and technical

speciflcations

in

acCtrdance with the

relevant

provisions

of GFR,

2005.

YE

u

nder

secreta

ry,Y,if

HJ

ji

iff,'j

TeHFax

*24621305

E-rnail

-

vinaYak.

[email protected]

To

The Secretaries

of

all

Central

Govemment

Ministries/

Departments.

Copy

to:

-

Financial

Advisors of all Central Government

Ministries/

Departrnents.

(urn

mmn)

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OFFICE OF

THE

DEVELOPMENT

COMMISSIONER

(MtcRo,

SMALL

& MEDIUM

ENTERPRISES)

MINISTRY

OF MICRO, SI4ALL

& MEDIUM

ENTERPRISES

GOVERNMENTOF

INDIA

Nkman Bhawan,

TthFloot

Maulana

tuad

Road,

.

NewDelhi-110108

qrq**s'

lll=lll=

mcno,

sltAu

I llE0lut

ENTERPRISES

qe ?Tg

3fi-r

qqzrq

sntrq

Ph.EPABX. 23063800.

23063802,

23063803

FAX

- (91.11)

23062315, 23061726,

23061068. e-mail

-

[email protected]

F.

No.

1(?X1[?AM-MA

Part

Dated

the

ffiarcn,

2016

gFFrcE

MEMORENDUM

Please

find

enclosed

a

Policy Circular

of

even

no dated

1Oth

March,

2A16 relating

to Retaxation

of

Norrns

for

Startups

and

Micro &

Small Enterprises

in

Public

Procurement

on Prior

Experience

-

Prior

Turnover criteria,

Publication Division

is requested

to take

up

the

matter

with

Public

lnformation

Bureau

to

place

this

Policy

Circular

on

the

public

domain.

Yours

faithfully,

Encl :

As above.

(

U C.

Shukla

)

Directo(MA)

Tele:

23063363

1.

Shri

Harish

Anand, Director

(Pub),

O/o

DC(MSME)

2.

Shri S

V

Sharma, Director

(SENET)

with a

request

to up

load in

-

office

website.

3.

lnformation Officer,

PlB,

Room

No

704A Shastri

Bhawan,

New

Delhi.

9o\

Government of

lndia

Ministry

of Micro, Small

&

Medium Enterprises

O/o the Development Commissioner

(MSME)

Nirman

Bhavan,

A-Wing,

7rh Floor

Maulana

Azad

Road,

New DelhLl10108

Tel, 011-23061091

Fax

No.0'11-23060536

Policy Circular No.

1(2X1112016-MA

Dt.

10rh March 2016

To

All

Central M

in istries/Departments/C

PSU s/All Concerned

Subject Relaxation of Norms

for

$tartups

and Micro

& Small Enterprises

ln

Publlc

Procurement

on

Prlor

Experience

-

Prlor

Turnover

crlterla,

(1)

The

Government

of lndia has

notified

Public

Procurement

Policy

for Micro and

Small

Enterprises

(MSEs)

Order 2012 with

effect

from

1't

April,2012 and 200/o

procurement

from

Micro

&

Small

Enterprises

of the

total

procurement

by Central

Mlnistries/Departments/CPSUs has

become

mandatory

with effect

from

lsrApril,

2015.

(2)

The

Government of

lndia

has announced

'startup

lndia'

initiative

for creating

a

conducive

environment

for

Starlups

in lndia.

(3)

The

Startups are normally Micro and

Small

Enterprises

which

may not have

a

track record.

These will

have

technical capability

to deliver the

goods

and

services as

per prescribed

technical&

quality

specifications,

and may not

be able

to

meel

the

quaiification

criterion relating to

prior

experience-prior

turnover.

(4)

ln exercise of

Para

16 of

Public

Procurement

Policy

for

Micro and

Small

Enterprises

Order

2012, it is clarified

that allCentral

Ministries/Departments/

Central

Public Sector Undertakings

may

relax

condition

of

prior

turnover

and

prior

experience with respect

to Micro and

Small

Enterprises

in

all

public

procurements

subject to

meeting

of

quality

and technical

specifications.

(5)

This

issues with the

approval of

Union

Minister of

Micro, Small and

Medium

Enterprises

n

V/r{,:l16

(Su

rendra Nain

rripittr i;

Additional

Secretary

&

Development

Commissioner'MSME

Ministry of

Micro, Small

& Medium

Enterprises.