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Section11
The Micro, Small and Medium Enterprises Development Act, 2006

Procurement preference policy

In force From 02 Oct 2006 Act 27 of 2006 As on 15 Oct 2026

Act 27 of 2006 Ministry Micro, Small and Medium Enterprises Enacted 16 Jun 2006 In force 02 Oct 2006 Cited by 1 provision Instruments 4

Section 11 of the Micro, Small and Medium Enterprises Development Act, 2006 deals with procurement preference policy. For facilitating promotion and development of micro and small enterprises, the Central Government or the State Government may, by order notify from time to time, preference policies in respect of procurement of goods and services, produced and provided by micro and small enterprises, by its Ministri The Act came into force on 02 Oct 2006.

For facilitating promotion and development of micro and small enterprises, the Central Government or the State Government may, by order notify from time to time, preference policies in respect of procurement of goods and services, produced and provided by micro and small enterprises, by its Ministries or departments, as the case may be, or its aided institutions and public sector enterprises.

Section 11, The Micro, Small and Medium Enterprises Development Act, 2006 (Act 27 of 2006).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

Referred to by 1

  1. s. 7 Classification of enterprises

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. Reco Process Pumps v. Development Commissioner (MSME) & Ors.

    High Court 24 Apr 2024 Persuasive (High Court Single Bench — Judgment / Final Order) W.P.Nos.35873 & 35878 of 2023 — Common Order / Final Order 24.04.2024 (Madras HC — S.M. Subramaniam J.)

    Court's Decision & Legal Precedent

    Section 11 empowers the Central Government to notify preference policies for procurement of goods and services produced/provided by micro and small enterprises. Benefits under the PPP-MSE Order 2012 (price-band matching within L1+15% and portion of tender quantity) apply only to Micro and Small Enterprises as classified under s.7 — not to Medium Enterprises. Where L1 is a Medium Enterprise and L2 is an MSE quoting within the L1+15% band, the procuring CPSU (here BHEL) must extend s.11 / PPP-MSE purchase preference to the MSE bidder when finalising the tender; concurrent Make-in-India preference guidelines cannot defeat the mandatory MSE preference under s.11.

    On this section: NEW teaching fill on empty MSMED s.11: mandatory procurement preference for Micro/Small (not Medium) enterprises and L1+15% price-matching under PPP-MSE Order issued under s.11.

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Made under this section, and citing it

4 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 11

What have the courts held on Section 11 of the Micro, Small and Medium Enterprises Development Act?

Reco Process Pumps v. Development Commissioner (MSME) & Ors. (24 Apr 2024) is the leading judgment on this section among those set out below: NEW teaching fill on empty MSMED s.11: mandatory procurement preference for Micro/Small (not Medium) enterprises and L1+15% price-matching under PPP-MSE Order issued under s.11.

How do I find court cases under Section 11 of the Micro, Small and Medium Enterprises Development Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Micro, Small and Medium Enterprises Development Act 11, section 11 Micro, Small and Medium Enterprises Development Act, section 11 of the Micro, Small and Medium Enterprises Development Act. People searching for it also type micro small and medium enterprises class 11. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Reco Process Pumps v. Development Commissioner (MSME) & Ors. (24 Apr 2024).

What should I read with Section 11 of the Micro, Small and Medium Enterprises Development Act, and has it changed?

1 other provision in this corpus refers back to it. 4 instruments name it without being made under it, most recently S.O. 5745(E).—In exercise of powers conferred by section 11 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the Central Government hereby makes the following order further to amend the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012, (2022), then S.O. 3237(E).—In exercise of the powers conferred by section 11 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the Central Government hereby makes the following order further to amend the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012, (2021).

When did Section 11 of the Micro, Small and Medium Enterprises Development Act come into force?

Section 11 of the Micro, Small and Medium Enterprises Development Act, cited as Micro, Small and Medium Enterprises Development Act 11, came into force on 02 Oct 2006, having been enacted on 16 Jun 2006. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.