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CMA Final · Corporate and Economic Laws · Specific Legal Provisions related to MSME Sector

Under the MSME Development Act, 2006, which authority may notify preference policies for procurement of goods and services produced and provided by micro and small enterprises?

Under Section 11 of the MSME Development Act, 2006, the Central Government or the State Government may, by order notified from time to time, announce preference policies for procurement from micro and small enterprises by its ministries, departments, aided institutions and public sector enterprises.

  1. AOnly the Member-Secretary of the National Board for Micro, Small and Medium Enterprises
  2. BOnly the Reserve Bank of India through a master circular
  3. CThe Central Government or the State Government, by order notified from time to timeCorrect
  4. DOnly the Parliament, by amending the Act every year

Explanation

Section 11 empowers the Central Government or the State Government to notify, by order from time to time, preference policies for procurement from micro and small enterprises. The Member-Secretary of the Board only exercises prescribed powers under Section 6, and the RBI and Parliament are not given this role in Section 11.

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