The Tamil Nadu government has reiterated its instructions to the authorities to enhance the participation of entrepreneurs from the Scheduled Caste (SC) and Scheduled Tribe (ST) communities in the public procurement system. It was found that the contracting authorities were not aware of the mandatory prioritization of the purchase, which required repeated repetition to the authorities.
The secretary (expenditure) of the state government’s finance department said in a communication to the authorities that the tender documents should contain a specific clause that 5% of the total procurement requirement will be compulsorily allocated to domestic enterprises owned by persons from the SC and ST communities.
“You (the authorities) are hereby instructed to unconditionally ensure the strict implementation of mandatory purchase preference as stated above in all procurements executed by your organization and all entities subordinate to your organization. I further request you to provide a quarterly compliance report on all bids submitted by your organization,” the statement said.
The state government has allowed mandatory purchase preference for businesses owned by entrepreneurs from SC and ST communities under certain provisions of the Tamil Nadu Transparency in Tenders Act, 1998 and Rules, 2000.
Any business located in Tamil Nadu and owned by any person belonging to these communities or any business which is a firm or limited liability company having its registered office and place of business in the State and where at least three-fourths of the partners belong to these communities are defined as “SC or ST owned household businesses”.
Any domestic company, which is a company having its registered office and place of business in a State where more than 50% of the ordinary shares are held by persons belonging to the SC or ST community and the control of the company as defined in Section 2(27) of the Companies Act, 2013 is vested in persons belonging to such communities, will also fall under the mandatory purchase preference clause.
Published – 21 Oct 2025 22:39 IST
