Tamil Nadu government reiterates purchase preference for SC/ST-owned firms while floating tenders

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The Tamil Nadu authorities has reiterated its instructions to authorities to heighten the information of entrepreneurs from the Scheduled Caste (SC) and Scheduled Tribe (ST) communities successful the nationalist procurement system. It was noticed that procurement entities were not alert of the mandatory acquisition preference, which necessitated the reiteration to the authorities.

In a connection to authorities, Secretary (Expenditure) successful the State government’s Finance Department stated that the tender papers should see a circumstantial clause that 5% of the full request successful the procurement would beryllium mandatorily awarded to home enterprises owned by persons from the SC and ST communities.

“You [Authorities] are hereby instructed to guarantee strict implementation of the mandatory acquisition penchant arsenic indicated supra successful each the procurement done by your organisation and each entities subordinate to your organisation, without fail. I further petition you to supply a quarterly study regarding compliance for each the tenders floated by your organisation,” the connection said.

The State authorities had enabled the mandatory acquisition penchant for enterprises owned by entrepreneurs from SC and ST communities nether definite provisions of the Tamil Nadu Transparency successful Tenders Act, 1998, and Rules, 2000.

Any endeavor located successful Tamil Nadu and is owned by immoderate idiosyncratic belonging to these communities oregon immoderate enterprise, which is simply a steadfast oregon constricted liability concern having its registered bureau and spot of concern successful the State and wherever nary little than three-fourths of the partners beryllium to these communities, are defined arsenic ‘Domestic Enterprises owned by SCs oregon STs’.

Any home enterprise, which is simply a institution having its registered bureau and spot of concern successful the State, wherever much than 50% of the mean shareholdings pertain to persons belonging to SC oregon ST communities and the power of the company, arsenic defined successful Section 2(27) of the Companies Act, 2013, is vested with persons belonging to these communities, volition besides autumn nether the mandatory acquisition penchant clause.

Published - October 21, 2025 10:39 p.m. IST

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