No, DPE/7(4)/2007-Fin ; Government of India Ministry of Heavy Industries & Public Enterprises Department of Public Enterprises 4 5) Public Enterprises Bhawan a) Block No. 14, CGO Complex, Lodhi Road, New Delhi-1 10003 Dated: 8 November, 2016 OFFICE MEMORANDUM Subject:- Relaxation of Norms for Startups Medium Enterprises in Public Procurement Regaling Prior Experience- Prior Turnover criteria - rag The undersigned is directed to enclose herewith a copy of the OM No.F.20/2/2014.PPD(pt.) dated 20" September, 2016 along with a copy of OM of even number dated 25" July,2015 (with enclosure) on the above subject issued by Ministry of Finance, Department of Expenditure (Procurement Policy Division). All Ministries/Departments concemed are advised to direct their CPSEs to follow the directions mentioned therein for implementation. This issues with the approval of Secretary, DPE. Wotaen dha (Kalyani Mishra ) Director v Ph. 24362061 pevia os hus 4. All Secretaries of Administrative Ministries/Departments ie od ha ZEN Encl. : As above 2. All CMD of CPSEs 3. Ministry of Finance, Department of Expenditure w.r-tLetter No. F.26/4/2016.PPD dated 20" September, 2016. 4. 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Unerédt afte frag 8 aqce 8 f ata sem fart At Saag ae amas aRNo.F.20/2/2014-PPD(PL) Ministry of Finance Department of Expenditure Procurement Policy Division 516, Lok Nayak Bhawan, New Delhi Dated the 20" 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 25" July, 2016, whersin it was clatified that all Central Ministries/ Departments may relax condition of prior turnover and prior experience in public procurement to all Start-ups [whether Micro & Small Enterprises (MSEs) or otherwise] subject to meeting of quality and technical specications in accordance with the relevant provisions of GFR, 2005. 2. Adoubt has arisen if it makes optional for Central Ministries/ Departments to relax condition of prior experience and prior tumover in public procurement to Startups. In this regard, it is again clarified that normally for all public procurement, the Central Ministties/ Departments have to ensure that criteria of prior tumover and prior experience for all Startups is relaxed subject to their meeting of quality and technical specifications. 3 3. However, there may be circumstances (like procurement of items related to public safely, health, crtcel security ‘operations and equipments, fe.) 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 relex the oxtora of prior ‘expefience/ turnover for ‘the Startups. 4. This issues with the approval of Finance Secretary, We > (Vinayak T. Likhar) Under Secretary (PPD) ‘TelFax — 24621305 E-mail - vinavaklikhar@nic.in To “The Secretaries of all Central Goverment Ministries! Departments. Copy to: - (Financial Advisors of all Central Government Ministries! Departments. (i) Tha Secretary, Department of Public Enterpriees, Room No.305, Block No.1, CGO Complex, New Delhi-110 003 with a request t0 issue appropriate Instructions to Central Public Sector Undertakings (CPSUs) to implement #5 of “Action Plan for Startup India’,No.F.20/2/2014-PPD(Pt,) Ministry of Finance Department of Expenditure Procurement Policy Division 516, Lok Nayak Bhawan, New Delhi Dated the 25" July, 2016 OFFICE MEMORANDUM Subject:- Relaxation of Norms for Startups Medium Enterprises in Public Procurement regarding Prior Experience - Prior Turnover criteria, - The Government of India has announced ‘Startup India’ initiative for creating a conducive ecosystem for the growth of Startups in India. The Startups are defined iri Annexure-A of the ‘Action Plan for Startups India". The same is available (on the website of Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry. 2, Ministry of Micro, Small & Medium Enterprises (MSMEs) vide Policy Circular No. 1(2)(1)/2016-MA dated 10" March, 2016 has clarified that all Central Ministries / Departments / Central Public Sector Undertakings (CPSUs) may telax condition of prior turnover and prior experience with respect of Micro & Small Enterprises (MSEs) in all public procurements subject to meeting of quality and tectinical specifications. 3. As per Rule 160(i)(2) of GFR, 2008, there Is elready a provision that the bidding document should contain criteria for eligibility and qualfication fo be met by the bidders such as minimum level of experience, past performance, technical capability, manufacturing facilities and financial position etc.. In view of above, it js further clarified that all Central Ministries / Departments may relax condition of prior turnover and prior experience in public procurement to all Startups {whether MSEé or otherwise) subject to mesting of quality and technical specifications in acéordance with the relevant provisions of GFR, 2005. (Vinayak T, Likhar) Under Secretary to the Govt. of India TelFax~ 24621305 E-mail — yinayak,likhar@nic.in To ‘The Secretaries of all Central Government Ministries/ Departments, Copy to: - Financial Advisors of all Central Government Ministries’ Departments.fae ora wr arate (as, 33 sik em se) OFFICE OF THE DEVELOPMENT COMMISSIONER We ag at wen om are (WICRO, SMALL & MEDIUM ENTERPRISES) (reat ) MINISTRY OF MICRO, SMALL & MEDIUM ENTERPRISES. 7 GOVERNMENT OF INDIA frmfo was, Tree ‘fsa, Hert ona tz, { h= l= MSM= h= a Niman Bhawan, 7 Foo, Mev Ate Rood af fere110 108, Now Delhi 110 108 ie mone get meq ot mens wet 2 PREPABX - 73063800, 23063802, 29053803 FAX - (81-11)23062515, 29061725, 2061008, ema - demsmenaQnb.ncin F. No. 1(2)(1)/2044-MA Part Dated the March, 2016 OFFICE MEMORENDUM Please find enclosed a Policy Circular of even no dated 10" March, 2016 relating to Relaxation of Norms 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 Information Bureau to place this Policy Circular on the public domain. Yours faithfully, Encl: As above. Ap (U.C. Shukla ) Director(MA) Tele: 23063363 4. 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. Information Officer, PIB, Room No 704A Shastri Bhawan, New Delhi.a Government of India Ministry of Micro, Small & Medium Enterprises Olo the Development Commissioner (MSME) Nirman Bhavan, A-Wing, 7" Floor Maulana Azad Road, New Delhi-110108 Tel. 011-23061091 Fax No.011-23060536 Policy Circular No. 1(2)(1)/2016-MA Dt. 10" March 2016 To All Central Ministries/Departments/CPSUs/All Concerned Subject: Relaxation of Norms for Startups and Micro & Small Enterprises in Public Procurement on Prior Experience — Prior Turnover criteria. (1) The Government of India has notified Public Procurement Policy for Micro and Small Enterprises (MSEs) Order 2012 with effect from 1% April, 2012 and 20% procurement from Micro & Small Enterprises of the total procurement by Central Ministries/Departments/CPSUs has become mandatory with effect from 1° April, 2015. (2) The Government of India has announced ‘Startup India’ initiative for creating a conducive environment for Startups in India. (2) 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 meet the qualification criterion relating to prior experience-prior turnover. (4) In exercise of Para 16 of Public Procurement Policy for Micro and Small Enterprises Order 2012, itis clarified that all Central 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. (6) This issues with the approval of Union Minister of Micro, Small and Medium Enterprises. 7 ye (Surendra Nath Tripathi) Additional Secretary & Development Commissioner-MSME Ministry of Micro, Small & Medium Enterprises.Ques.1 Ques. 4 FREQUENTLY ASKED QUESTION SINGLE POINT REGISTRATION SCHEME When the Government of India launched the Central Government Stores Purchase Programme? The Government of India launched the Central Government Stores Purchase Programme in 1955. When the Single Point Registration Scheme was evolved by Government of India and what was the objective of Single Point Registration Scheme? The Single Point Registration Scheme was introduced in 1976 with the objective to avoid the multiple registration What are the benefits available to Micro & Small Enterprises (MSE) registered with NSIC under Government Stores Purchase Programme? 1. Issue of Tender Free of Cost 2. Exemption of payment of Earnest Money Deposit (EMD) 3. In tender participation, MSEs quoting price within the price band of L1+15 percent shall also be allowed to supply a portion upto 20% of requirement by bringing down their price to L1 price where L1 is non MSEs. 4. Every Central Ministries / Departments / PSUs shall set an annual goal of minimum 20% of the total annual purchases of the products or services produced or rendered by MSEs. Out of annual requirement of 20% procurement from MSEs, 4% is earmarked for units owned by Scheduled Castes / Scheduled Tribes. 5. 358 items are reserved for exclusive purchase from MSEs. Who is eligible to get registered with NSIC under Single Point Registration Scheme? Micro & Small Enterprises are eligible to get registered with NSIC under SPRS. Page 1of5Ques. 5 Ans. Ques. 8 Ans. Ques. 9 Ans. FREQUENTLY ASKED QUESTION SINGLE POINT REGISTRATION SCHEME How and to whom MSEs should apply for registration with NSIC under its Single Point Registration Scheme? MSE units can apply either online on NSIC’s SPRS website www.nsicspronline.com OR in person by visiting nearest branch of NSIC Describe the names of Inspecting Agencies engaged to carry out the technical inspection of MSEs for registration under Single Point Registration Scheme and what are their inspection charges? MSME-DI, RITES & CDC are the Inspecting Agencies and their charges are as under:- Name of Micro Small Remarks Inspecting | Enterprises | Enterprises Agency | Inspection | Inspection Charges | Charges MSME-DI | Rs. 2000/- | Rs. 3000/- T RITES Rs. 6000/- | Rs. 8000/-_ | Inclusive of Taxes and Travel Expense coc Rs. 6000/- | Rs. 8000/- | Inclusive of Taxes and Travel Expense What is the fee charged by NSIC from MSEs for grating fresh registration and renewal/lamendments of the registration under its Single Point Registration Scheme? s. Category Revised Fee No | [Fee for Fresh) Turnover up-to Rs, 100 lakh: Registration of Micro & Small Enterprises: 1) For Micro Enterprises: Rs. 3000/- a) Tumover up-to Rs. 2) For Small Enterprises. 100 lakh Rs. 5000/- Page 20f5FREQUENTLY ASKED QUESTION SINGLE POINT REGISTRATION SCHEME b) Turnover exceeding Rs. 100 b) Turnover lakh exceeding Rs. 100 1) For Micro Enterprises: lakh Rs. 3000/- plus Rs. 1500/- for every additional turnover of Rs. 100 Lakh 2) For Small Enterprises Rs. 5000/- plus Rs. 2000/- for every additional turnover of Rs. 100 Lakh With cap of Rs. 1 lac for all categories. IT | a) Fee for issuance of amendments in stores (Qualitative & Quantity); Fee 50% of the charges for issuance of proposed at | above change in for Micro and Small monetary limit or Enterprises respectively any other with a cap of amendment in the Rs. 50,000/- certificate, and b) Fee for issuance of Renewal of G-P. Registration (Every Two Years) i’ | Concessions a) Micro & Small|a) As per approved scheme of Enterprises owned] — National SC/ST Hub (Circular no. by the SC/ST] — SIC/HO/NSSH/Schemes/2016- (Definition of] 17 dated 09.09.2016) in NSIC, SC/ST MSE and] the SC/ST units shall be eligible eligibility for| for upfront 100% subsidy on the benefits under} fee of NSIC for fresh registration NSSH has been} / renewal / amendments / explained in competency certificate and also Circular No.| the inspection fees of the SIC/HO/NSSH/Sch | empaneled Inspection eme/2016-17 dated | Agencies/NSIC including 09.09.2016) Service Tax applicable. The SSPRS shall be run as a pilot Page 30fSQues. Ans. Ques. Ans. Ques. Ans. Ques. Ans. Ques. Ans. 10 "1 12 13 14 FREQUENTLY ASKED QUESTION SINGLE POINT REGISTRATION SCHEME b) b) MSEs other than SC/ST located in the entire North Eastern Region project charging nominal fee of Rs. 100 per unit during this E. 2016-17 and further continuation of the same shall be ‘subject to review. The units located in North Eastern Region other than SC/ST _will_be given 20% concession in fee (no change in the fee being collected by BOs for Technical Inspections of MSEs) Is NSIC issuing Provisional GP Registration Certificate to Micro & Small Enterprises; if yes what is the criteria? Yes. NSIC issues Provisional MSEs under SPRS who have Enlistment Certificate to those started the production but not having the audited Balance sheet for the last one year. How much Monetary Limit fixed in Provisional Registration under SPRS Rs. 5 lac. When MSMED Act introduced? In the year 2006 What is the prescribed limit for investment in Plant & Machinery for Micro Enterprise in MSMED Act. Rs. 25 lac What is the prescribed limit for investment in Plant & Machinery for Small Enterprise in MSMED Act More than Rs. 25 lac but does not exceed Rs. 5 crore Page 4of5Ques. Ques. Ans. Ques. Ans. Ques. FREQUENTLY ASKED QUESTION SINGLE POINT REGISTRATION SCHEME Whether the Service Enterprises are eligible to get the benefit as prescribed in the Public Procurement Policy for Micro & Small Enterprise (MSMEs) Order 2012. Yes, in the Public Procurement Order 2012 service industries are at par with the manufacturing industry What is the prescribed limit for investment in equipment for micro service industry? Up to Rs. 10 lac What is the prescribed limit for investment in equipment for small service industry? More than Rs. 10 lac but does not exceed Rs. 2 crore How can buying agency verify the GP Enlistment certificate, whether it is valid or not? The Buying Agency can verify the GP Enlistment Certificate either from NSIC website www.nsic.co.in OR www.nsicspronline.com What the validity period of Enlistment Certificate? SPRS Enlistment Certificate is valid for Two Years from the date of issue. Can traders can be registered under SPRS? NSIC do not register the traders. Can drugs and medicines manufacturing units be considered for registration under SPRS? NSIC do not register MSEs engaged in manufacturing of drugs and medicines. Updated : 21.10.2016 Page 5 ofS