Govt, PSUs Fall Short of Meeting 3% Procurement Target for Women-Owned Enterprises

ENA MSME 2024-06-18 13:38:14 New Delhi, Jun 18 (KNN) Indian Governments Public Procurement policy mandates that 25 per cent of all procurement should be sourced from Micro, Small, and Medium Enterprises (MSMEs), with a specific 3 per cent target set aside for women-owned enterprises (WOBs). However, this target remains largely unmet, with the national average hovering around a mere 1 per cent, which lacks credibility due to prevalent issues such as fronting—where businesses falsely claim to be women-owned to gain procurement advantages. Women-owned businesses often struggle to navigate the intricate rules and cumbersome systems involved in public procurement, deterring their participation. The percentage of contracts awarded to women businesses is significantly lower compared to their proportion within the MSME sector and the general population. There is also a lack of periodic impact assessments of policies and initiatives aimed at supporting women-owned businesses, making it difficult to fine-tune strategies. To address these challenges, it is recommended to develop specific policies and quotas for women-owned businesses, separate from those for other MSMEs. This includes incorporating civil works under the targets for WOBs and introducing targets for second and third-tier vendors (sub-contractors). Regular assessments of various policies and initiatives should be conducted to refine and improve them as needed. Implementing a policy for the periodic review of items reserved for women-owned businesses and customising these lists for each major procuring entity is also crucial. Procurement rules should be revised to provide the necessary flexibilities that encourage participation from women-owned businesses, with close monitoring of compliance. Mandating the timely disclosure of achievements related to contracts awarded to women-owned businesses, including gender tagging of each awarded contract, will enhance transparency. Medium-term goals should include analysing reasons behind the lower number of women-owned businesses and addressing these through targeted policies, allocating specific budgets, and analysing tenders where women-owned businesses participated but did not win. Establishing dedicated women cells at the state level and including relevant metrics in gender indicators is also recommended. The suggestions on women participation in public procurement were part of a recent workshop organised by the World Bank Group. Key participants included Mr. Sanjay Aggarwal, Advisor (PPD), Ministry of Finance, Department of Expenditure, Government of India; Mr. Ajit B. Chavan, Joint Secretary & Additional CEO, Government e-Marketplace (GeM); Mr. Kanwalpreet, Executive Director RS(G), Ministry of Railways, Government of India; and Ms. Mercy Epao, Joint Secretary, Ministry of MSME, Government of India. The workshop provided a platform for discussing these challenges and recommendations, with an aim to enhance the role of women-owned enterprises in public procurement processes across the country. (KNN Bureau) 38248 https://knnindia.co.in/news/newsdetails/msme/govt-psus-fall-short-of-meeting-3-procurement-target-for-women-owned-enterprises 2024-06-18 13:38:14 knnindia.co.in Govt, PSUs Fall Short of Meeting 3% Procurement Target for Women-Owned Enterprises