The Public Procurement Policy mandates that 4% of central government procurementmust go to MSEs owned by SC/ST entrepreneurs. This translates to roughly ₹20,000 crore annually in dedicated procurement. Combined with state-level reservation policies, SC/ST-owned enterprises have specific, quantified access to government contracts.
The 4% Sub-Target
- 4% of total annual procurement by central ministries and CPSEs must come from SC/ST MSEs
- This is carved out of the 25% MSE mandate — SC/ST MSEs get a guaranteed share
- Enterprise must be owned by SC/ST individuals (51%+ ownership in case of partnership/company)
- Udyam registration must reflect the SC/ST ownership status
Benefits Stack
- All MSE benefits — EMD exemption, 15% purchase preference, reserved items access
- 4% quota — dedicated procurement allocation within the 25% MSE target
- NSIC-SC/ST Hub — National SC-ST Hub by NSIC provides handholding for tender participation, including bid document preparation
- Stand-Up India loans — ₹10 lakh to ₹1 crore specifically for SC/ST entrepreneurs
- Venture Capital Fund for SC — IFCI manages a ₹200 crore fund for SC entrepreneurs
NSIC National SC-ST Hub
The National SC-ST Hub, operated by NSIC, specifically helps SC/ST entrepreneurs participate in government procurement:
- Free training on tender participation, GeM registration, and bid preparation
- Mentoring from experienced SC/ST entrepreneurs who have won government contracts
- Buyer-seller meets connecting SC/ST MSEs with government procurement officers
- Assistance with obtaining required certifications and registrations
- Help with capacity building to meet PQ requirements
How to Access
- Step 1: Get Udyam registration with SC/ST ownership clearly marked
- Step 2: Register on GeM — platform auto-tags SC/ST MSE status from Udyam data
- Step 3: Register with NSIC for additional certifications and support
- Step 4: Apply for Stand-Up India loan if you need working capital for tender execution
- Step 5: Contact your nearest NSIC office for SC-ST Hub support programmes in your district
SC/ST MSE Tender Opportunities
Find government tenders with SC/ST MSE procurement preference on Tenderkart.
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