Procurement from SC/ST-owned MSEs was recorded at 0.36% (Rs. 5.56 crore).
NEW DELHI (India CSR): Rashtriya Chemicals and Fertilizers Limited (RCF), a leading Government of India undertaking, has announced that it has significantly exceeded its procurement target from Micro and Small Enterprises (MSEs) during the financial year 2024-25. The company disclosed that its Trombay and Thal units together procured goods and services worth Rs. 854.24 crore from MSEs. This figure represents 55.03 percent of its total eligible procurement expenditure of Rs. 1,552.3 crore, far surpassing the mandated benchmark of 40 percent for Central Public Sector Enterprises (CPSEs).
The procurement calculation excludes raw materials, natural gas, water, electricity, catalysts and proprietary items, which are considered outside the scope of MSE participation. By achieving this high level of procurement from MSEs, RCF has reaffirmed its commitment to strengthening the small business ecosystem, which is often described as the backbone of India’s industrial and employment structure. Officials from the company noted that this performance reflects RCF’s dedication to supporting the government’s vision of Atmanirbhar Bharat, which positions MSEs at the centre of inclusive and sustainable economic growth.
While the overall procurement target has been comfortably surpassed, the company acknowledged that its performance against sub-targets for women-owned and SC/ST-owned MSEs remained modest. The procurement from women entrepreneurs during the year amounted to Rs. 8.79 crore, or 0.57 percent of the total, while procurement from SC/ST-owned MSEs stood at Rs. 5.56 crore, or 0.36 percent of the total procurement. These figures fall short of the prescribed three percent reservation for women-owned MSEs and four percent for SC/ST-owned MSEs, as mandated by the 2018 amendment to the Public Procurement Policy.
Explaining the shortfall, RCF pointed out that the achievement of these sub-targets depends on several factors that lie beyond the company’s direct control. The extent of participation by women and SC/ST entrepreneurs in tenders, their ability to fulfil stringent prequalification criteria, the competitiveness of their quoted prices, and strict adherence to tender terms and conditions have all influenced the final outcome. Despite the company’s efforts to encourage wider participation, these challenges have limited the level of procurement from these groups.
The Public Procurement Policy for MSEs was originally notified by the Ministry of Micro, Small and Medium Enterprises in March 2012. It mandated that government departments, ministries, and CPSEs source a portion of their procurement from micro and small enterprises. In November 2018, the Government of India amended the policy through Gazette Notification S.O. 5670(E), increasing the overall target from 20 percent to 25 percent, and introducing specific sub-reservations for women and SC/ST entrepreneurs. A further review held in June 2021 under the chairmanship of the Additional Secretary and Development Commissioner (MSME) recommended that CPSEs must procure a minimum of 40 percent of all non-exempted items from MSEs from the financial year 2021-22 onwards.
RCF Procurement Performance in FY 2024-25
| Category | Target (as per Policy) | Achieved by RCF | Status |
|---|---|---|---|
| Overall Procurement from MSEs | Minimum 40% | 55.03% (₹854.24 crore) | Target Exceeded |
| Procurement from Women-owned MSEs | Minimum 3% | 0.57% (₹8.79 crore) | Target Not Achieved |
| Procurement from SC/ST-owned MSEs | Minimum 4% | 0.36% (₹5.56 crore) | Target Not Achieved |
(India CSR)
