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Existing Regulatory Framework

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Small & Medium Enterprises

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The SME Policy Framework aims to maximise opportunities for SME participation in government procurement. Developed through consultation with industry and agencies, it provides significant enhanced support by Increasing direct opportunities for SMEs to gain government business. The SME Policy Framework will be implemented progressively as part of the reform of government procurement.

A Small Enterprise (SE) is a business entity which meets the following parameters:

Number of Employees Annual Sales Turn-Over
Up to 50 Up to 150 million

Further, an entity has to fulfill both the criteria of number of employees and sales turnover for categorization as small enterprise. However, in cases where an entity fulfils one parameter of SE and its second parameter falls within the range prescribed for medium enterprise (ME) or above the upper limit prescribed for ME, then the subject entity shall be classified as ME or commercial/corporate entity as the case may be.

Small Enterprise can avail exposure up to Rs 25 million from a single Bank/DFI or from all banks/DFIs. Employees include contract employees.

Medium Enterprise (ME) is a business entity, ideally not a public limited company which meets the following parameters:

Number of Employees Annual Sales Turn-Over
51-250 (Manufacturing & Service MEs)

51-100 (Trading MEs)

Above Rs 150 million and up to Rs 800 million

(All types of Medium Enterprises)

Further, an entity has to fulfill both the criteria of number of employees and sales turnover for categorization as medium enterprise. However, when an entity’s one parameter is as per ME criteria and its second parameter is as per SE criteria, than subject entity would be categorized as ME. Similarly, when an entity’s one parameter is as per ME and its second parameter is above the upper limit prescribed for ME,then subject entity shall be categorized as commercial/corporate entity.