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[:he <Ga~ette of ~ndia ~
EXTRAORDINARY
'iWT II-~ 3-~-~ (ii)
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PART II-Section 3-Sub-scction (ii)
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PUBLISHED BY AUTllORITY
----·-·-·--·- ===;:;::::c::::;:is::::=====~====··=·-=::::===========
~ ~' ~ 1ITTf 26, 2012~ 6, 1934
'ti. 503) .. ··I·•• ;"'· 1
No. 5031 NEW DELHI, MONDAY, MARCii 26, 2012/CHAITRA 6, 1934
:::::;=:::;::;;:=:;;=======================================
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 2 THE GAZETTE OF INDIA : EXTRAORDINARY (PART II-SEC. 3(ii)]

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 4 THE GAZETIE OF INDIA: EXTRAORDINARY IPART 11--SEC. 3(ii)]

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6 THE GAZETTE OF INDIA : EXTRAORDINARY IPAKT II --SEC. 3(ii)I

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 14 THE GAZETIE OF INDIA : EXTRAORDINARY rPART n-sEc. 3(ii)J
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 ['tfl'TII ~3(ii)]
MINISTRY OF MICRO, SMALLAND
MEDIUM ENfERPRISF.S
New Delhi, the 23rd March, 2012
ORDER
S.O. 58l(E).-Whereas, the Central Government
Ministries, Departments and Public Sector Undertakings
shall procure minimum of20 per cent of their annual value
of goods or services from Micro and Small Enterprises;
And where:is, the Public Procurement Policy shall
apply to Micro and Small Enterprises registered with District
Industries Cen~ers or Khadi and Village Industries
Commission or Khadi and Village Industries Board or Coir
Board or National Small Industries Corporation or
Directorate of Handicrafts and Hand loom or any other body
,. specified by Ministry of Micro, Small and Medium
Enterprises;
And whereas, the Public Procurement Policy rests
upon core principles of competitiveness, adhering to sound
procurement practices and execution of orders for supply
of goods or services in accordance with a system which is
fair, equitable, transparent, competitive and cost effective;
and
And whereas, for facilitating promotion and
development of micro and small enterprises, the Central
Government or the State Government, as the case may be,
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.
Now, therefore, in exercise of the powers conferred
in section 11 of the Micro, Small and Medium Enterprises
Development (MSMED) Act 2006, the Central Government,
by Order, notifies the Public Procurement Policy (hereinafter
referred to as the Policy) in respect of procurement of goods
and services, produced and pro.vided by micro and small
enterprises, by its Ministries, Departments and Public
Sector Undertakings.
2. Short title and commencement. -
(I) This Order is titled as 'Public Procurement Policy
for Micro and Small Enterprises (MSEs) Order,
2012'.
(2) It shall come into force with effect from I st April
2012.
3. Mandatory procurement from Micro Small and
Enterprises. --(I) Every Central Ministry or Department or
Public Sector Undertaking shall set an annual goal of
procurement from Micro and Small Enterprises from the
financial year 2012-13 and onwards, with the objective of
achieving an overall procurement of minimum of 20 per
cent, of total annual purchases of products produced and
services rendered by Micro and Small Enterprises in a period
of three years.
1036 Gl/12-3
17
(2) Annual goal of procurement also include sub-
contracts to Micro and Small Enterprises by large
enterprises and consortia of Micro and Small Enterprises
formed by National Small Industries Corporation.
(3) After a period of three years i.e. from 1st April
2015, overall procurement goal of minimum of20 per cen!
shall be made mandatory.
(4) The Central Ministries, Departments and Public
Sector Undertakings which fail to meet the annual goal
shall substantiate with reasons to the Review Committee
headed by Secretary (Micro, Small and Medium
Enterprises), constituted in Ministry of Micro, Small and
Medium Enterprises, under this Policy.
4. Special provisions for Micro and Small Enterprises
owned by Scheduled Castes or Scheduled Tribes. % Out
of20 per cent target of annual procurement from Micro and
Small Enterprises, a sub-target of 20 per cent (i.e., 4 per
cent out of20 per cent) shall be earmarked for procurement
from Micro and Small Enterprises owned by the Scheduled
Caste or the Scheduled Tribe entrepreneurs. Provided that,
in event of failure of such Micro and Small Enterprises to
participate in tender process or meet tender requirements
and LI price, 4 per cent sub-target for procurement
earmarked for Micro and Small Enterprises owned by
Scheduled Caste or Scheduled Tribe entrepreneurs shall
be met from other Micro and Small Enterprises.
5. Reporting of targets in Annual Report. % (I) The
data on Government procurements from Midro and Small
Enterprises is vital for strengthening the Policy and for
this purpose, every Central Ministry or Department or Public
Sector Undertaking shall report goals set with respect to
procurement to be met from Micro and Small Enterprises
and achievement made thereto in their respective Annual
Reports.
(2) The annual reporting shall facilitate in better
understanding of support being provided by different
Ministries or Departments or Public Sector Undertakings
to Micro and Small Enterprises.
6. Price quotation in tenders. % (I) In tender.
participating Micro and Small Enterprises quoting price
within price band ofL I+ 15 per cent shall also be allowed to
supply a portion of requirement by bringing down tlu:ir
price to L l price in a situation where I, I pnce is from someone
other than a Micro and Small Enterprise and such Micro
and Small Enterprise shall be allowed to supply up to 20
per cent of total tendered "alue.
(2) In case of :l.ore than one such !\1icro and Small
Enterprise, the supply shall be shared proportionately (to
tendered quanthy).
7. Developing Micro and Small 1·.nterprise vendor~..
- The Central Ministries or Departments or Public Sector
Undertakings shall take necessar) steps to develop
appropriate vendors by organizing Vendor Development
Programmes or Buyer-Seller Meets and entering into Rate
18 THE GAZETTE OF INDIA: EXTRAORDINARY
Contract with Micro and Small Enterprises for a specified
period in respect of periodic requirements.
8. Annual Plan for Procurement from Micro and Small
Enterprises on websites. - The Ministries or Departments
or Public Sector Undertakings shall also prepare Annual
Procurement Plan for purchases and upload the same on
their official website so that Micro and Small Enterprises
may get advance information about requirement of
procurement agencies.
9. Enhancing participations of Micro and Small
Enterprises including those owned by Scheduled Castes
or Scheduled Tribes in Government procurements. % For
enhancing participation of Scheduled Castes or Scheduled
Tribes in Government procurement, the Central Government
Ministries, Departments and Public Sector Undertakings
sh.all take following steps, namely:-
(a) Special Vendor Development
Programmes or Buyer-Seller Meets shall
be conducted by Departments/Public
Sector Undertakings for Scheduled
Castes or Scheduled Tribes;
(b) Outreach programmes shall be
(;Onducted by National Small Industries
Corporation to cover more and more
Micro and Small Enterprises from
Scheduled Castes or Scheduled Tribes
under its schemes of consortia
formation; and
(c) National Small Industries Corporation
shall open a special window for
Scheduled Castes or Scheduled Tribes
under its Single Point Registration
Scheme (SPRS).
10.Reduction in transaction cost. % To reduce
transaction cost of doing business, Micro and Small
Enterprises shall be facilitated by providing them tender
sets free of cost, exempting Micro and Small Enterprises
from payment of earnest money, adopting e-procurement
to bring in transparency in tendering process and setting
up a Grievance Cell in the Ministry of Micro, Small and
Medium Enterprises.
11. Reservation of specific items for procurement.%
To enable wider dispersal of enterprises in the country,
particularly in rural areas, the Central Government Ministries
or Departments or Public Sector Undertakings shall continue
to procure 358 items (Appendix) from Micro and Small
Enterprises, which have been reserved for exclusive
purchase from them. This will help in promotion and growth
of Micro and Small Enterprises. including Khadi and village
industries, which play a critical role m fostering inclusive
gr0wth in the country.
12. Review Committee. (I )A Review Cr>mmittee has
been constituted ur.J.:r the Chairmanship cf Secretary,
Mini-.try of Micro. Small and Medium Ente· prises. f.:..r
[PAKr 11-SF.C. 3(ii)]
monitoring and review of Public Procurement Policy for
Micro and Small Enterprises vide Order No. 21(1)/2007-
MA dated the 21st June 2010 (Annexure).
(2) This Committee shall, inter alia, review list of358
items reserved for exclusive purchase from Micro and Small
Enterprises on a continuous basis, consider requests of
the Central Ministries or Departments or Public Sector
Undertakings for exemption from 20 per cent target on a .
.
case to case basis and monitor achievements under the '
Policy. P· .
13.Setting up of Grievance Cell. % In addition, a
'Grievance Cell' will be set up in Ministry of Micro, Small
and Medium Enterprises for redressing grievances of Micro
and Small Enterprises in Government procurement. This
cell shall take up issues related to Government procurement
raised by Micro and Small Enterprises with Departments or
agencies concerned, including imposition of unreasonable
conditions in tenders floated by Government Departments
or agencies that put Micro and Small Enterprises at a
disadvantage.
14. Special Provisions for Defence Procurements.%
Given their unique nature, defence armament imports shall
not be included in computing 20 per cent goal for Ministry
of Defence. In addition, defence equipments like weapon
systems, missiles, etc. shall remain out of purview of such
Policy of reservation.
15. Monitoring of Goals.% The monitoring of goals
set under the Policy shall be done, in so far as they relate to
the Defence sector, by Ministry of Defence itself in
accordance with suitable procedures to be established by
them.
16. Removal of difficulty. % Any difficulties
experienced during the course of implementation of the
above Policy shall be clarified by Ministry of Micro, Small
and Medium Enterprises through suitable Press releases
which would be kept on the public domain.
[F.No. 21(1)/2011-MA]
AMARENDRA SINHA, Additional Secretary and
Development Commissioner (MSME)
ANNEXURE
No. 21 (I )/2007-MA
Government of India
Ministry of Micro, Small and Medium Enterprises
Office of the Development Commissioner (MSME)
'A' Wing, 7th Floor, Nirman Bhavan,
NewDelhi-110108
Dated: 21st June, 20 I 0
ORDER
Si.lbjed: Constitution ofa Committee for monitoring and
 ['IT'T II-~ 3(ii)] 19

review of the Public Procurement Policy for 6. This issues with the approval of the Competent
Micro and Small Enterprises Authority.
Pending approval of the new Public Procurement SJ.
Policy for Micro and Small Enterprises (MSEs), a Committee
(Praveen Mahto)
is hereby constituted for looking into the applicability of
some of the provisions of the proposed Policy in respect Additional Economic Adviser
of select Central Ministries/Departments .. The Committee Ph:23062230,Fax:23061611
will be chaired by the Secretary, Ministry of Micro, Small
and Medium Enterprises.
2. The composition of the Committee will be as APPENDIX
follows: LISf OF ITEMS RESERVED FOR PURCHASE FROM
(i) Secretary, : Chairman SMALL SCALE INDUSTRIAL UNITS INCLUDING
Ministry ofMSME HANDICRAFT SECTOR

(ii) Secretary, : Member SI No. Item Description

Planning Commission I. AAC/and ACSR Conductor upto 19 strands
(iv) Secretary, : Member 2. Agricultural Implements
Department of Public (a) Hand Operated tools and implements
Enterprises
(b) Animal driven implements
(v) Director General
(Supplies and Disposals), : Member 3. Air/Room Coolers
Department of Commerce, 4. Aluminum builder's hardware
(vii) Ministry of Commerce 5. Ambulance stretcher
and Industry
6. Ammeters/ohm meterNolt meter (Electro magnetic
(viii) Additional Secretary and : Member Secretary upto Class I accuracy)
Development
Commissioner (MSME) 7. Anklets Weh Khaki

3. The Committee will undertake the following 8. Augur (Carpenters)

functions: 9. Automobile Head lights Assembly
(i) Consider the requests of the Central Ministries/ l'.l. Badges cloth embroidered and metals
Departments/PS Us for exemption, on a case to case
basis, from the 20% target; 11. Bags ofall types i.e. made ofleather, cotton, canvas
and jute etc. including kit bags. mail bags, sleeping
(ii) Review the list of 358 items (as per Appendix)
bags and water-proof bag.
reserved for exclusive purchase from the MSEs
based on the feedback received from the Central 12. Bandage cloth
Ministries/Departments/PSUs ;
13. Barbed Wire
(iii) Review the grievances received from MSEs
14. Basket cane (Procurement can also be made from
regarding Government procurement, including
State Forest Corpn. and State Handicrafts
imposition of unreasonable conditions in the tenders
Corporation)
floated by the Government Departments/PSUs; and
. (iv) Suggest special measures to be taken by the Central
15. Bath tubs
Ministries/Departments for enhancing their 16. Battery Charger
procurements from MSEs.
17. Battery Eliminator
e 4. The Committee may co-opt any other Ministries/
Departments of the Central Government as well as State 18. Beam Scales (upto 1.5 tons)
Governments or invite any other expert/person associated/ 19. Belt leather and straps
concerned with the MSMEs in its meetings, as and when
required. 20. Bench Vices

5. The Office of the Dev<:lv.p-rnent Commissioner 21. Bituminous Paints

(MSME) will provide secretariat support to this Committee. 22. Blotting Paper
20 THE GAZETTE OF INDIA: EXTRAORDINARY !PART II- St.c. 3(iill

23. Bolts and Nuts 62. Coir fibre and Coir yam
24. Bolts Sliding 63. Coir mattress cushions and matting
25. Bone Meal 64. Coir Rope hawserlaid
26. Boot Polish 65. Community Radio Receivers
27. Boots and Shoes of all types including canvas 66. Conduit pipes
shoes 67. Copper nail
28. Bowls 68. Copper Napthenate
'19. Boxes Leather 69. Copper sulphate
30. Boxes made of metal 70. Cord Twine Maker
31. Braces 71. Cordage Others
32. Brackets other than those used in Railways 72. Corrugated Paper Board and Boxes
33. Brass Wire 73. Cotton Absorbent
34. Brief Cases (other than moulded luggage) 74. Cotton Belts
35. Brooms 75. Cotton Carriers
36. Brushes of all types 76. Cotton Cases
37. Buckets of all types 77. Cotton Cord Twine
38. Button of all types 78. Cotton I losicry ,,.
39. Candle Wax Carriage 79. Cotton Packs
40. Cane Valves/stock ·talves (for water fittings only) 80. Cotton Pouches
41. Cans metallic (for milk and measuring) 81. Cotton Ropes
42. Canvas Products : 82. Cotton Singlets
(a) Water Proof Deliver, Bags to spec. No. IS - 1422/ 83. Cotton Sling
70
84. Cotton Straps
(b) Bonnet Covers and Radiators Muff. to spec.
85. Cotton tapes and laces
Drg. Lv 7/NSN/IA/130295
86. Cotton Wool (Non absorbent)
43. Capes Cotton and Woollen
87. Crates Wooden and plastic
44. Capes Waterproof
88. (a) Crucibles upto No. 200
45. Castor Oil
(b) Crucibles Graphite upto No. 500
46. Ceiling roses upto 15 amps
(c) Other Crucibles upto 30 kgs.
47. Centrifugal steel plate blowers
89. Cumblies and blankets
48. Centrifugal Pumps suction and delivery 150 mm. x
150mm 90. Curtains mosquito
49. ChatTCutter Blade 91. Cutters
50. Chains lashing 92. Dibutyl phthalate
51. Chappals and sandals 93. Diesel engines upto 15 H.P
52. Chamois Leather 94. Dimethyl Phthalate
53. Chokes for light fitting 95. Disinfectant Fluids
54. Chrome Tanned leather (Semi-finished Buffalo and 96. Distribution Board upto 15 amps
Cow) 97. Domestic Electric app Iiances as per BIS
55. Circlips Specifications:-
()
56. Claw Bars and Wires - Toaster Electric, Elect. Iron, Hot Plates, Elect. Mixer.
Grinders, Room heaters and convectors and ovens
57. Cleaning Powder
98. Domestic (House Wiring) P.V.C. Cables and Wires
58. Clinical Thermometers
(Aluminum) Conforming to the prescribed BIS
59. Cloth Covers Specifications and upto I 0.00 mm sq. nominal cross
liO. Cloth Jaconet section
61. Cloth Sponge 99. Drawing and Mathematical Instruments
,... .·

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100. Drums and Barrels 139. Hand pounded Rice (polished and unpolished)
101. Dust Bins 140. Hand presses
102. Dust Shield leather 141. Hand Pump
103. Dusters Cotton all types except the items required 142. Hand Tools of all types
inKhadi 143. Handles wooden and bamboo (Procurement can
104. Dyes: also be made from State Forest Corpn. and State
(a) Azo Dyes (Direct and Acid) Handicrafts Corporation)
'(b) Basic Dyes 144. Harness Leather
105. Electric Call bells/buzzers/door bells 145. Hasps and Staples
106. Electric Soldering Iron 146. Haver Sacks
107. Electric Transmission Line Hardware items like steel 147. Helmet Non-Metallic
cross bars, cross arms clamps arching horn, 148. Hide and country leather of all types
brackets, etc 149. Hinges
I08. Electronic door bell 150. Hob nails
1()1). Emergency Light (Rechargeable type) 151. Holdall
t
110. Enamel Wares and Enamel Utensils 152. Honey
l l l. Equipment camouflage Bamboo support 153. Horse and Mule Shoes
112. Exhaust Muffler 154. Hydraulic Jacks below 30 ton capacity
113. Expanded Metal 155. Insecticides Dust and Sprayers (Manual only)
114. Eyelets 156. Invalid wheeled chairs.
115. Film Polythene - including wide width film 157. lnvertor domestic type upto 5 K VA
116. Film spools and cans 158. Iron (dhobi)
117. Fire Extinguishers (wall type) 159. Key board wooden
118. Foot Powder 160. Kit Boxes
119. French polish 161. Kodali
120. Funnels 162. Lace leather
121. Fuse Cut outs 163. Lamp holders
122. Fuse Unit 164. Lamp signal
123. Garments (excluding supply from Indian Ordnance 165. Lanterns Posts and bodies
Factories)
166. Lanyard
124. Gas mantels
167. Latex foam sponge
125. Gauze cloth
168. Lathies
126. Gauze surgical all types
169. Letter Boxes
127. Ghamellas (Tasllas)
170. Lighting Arresters - upto 22 kv
128. Glass Ampules
171. LinkClip
129. Glass and Pressed Wares
I72. Linseed Oil .
130. Glue
173. Lint Plain
131. Grease Nipples and Grease guns
174. Lockers
132. Gun cases
175. Lubricators
133. Gun Metal Bushes
176. L.T. Porcelain KITKATand Fuse Grips
134. Gumtape
177. Machine Screws
135. Hand drawn carts of all types
178. Magnesium Sulphate
136. Hand gloves of all type~
179. Mallet Wooden
137. Hand Lamps Railways
180. Manhole covers
138. Hand numbering machine
181. Measuring Tapes and Sticks
 22 THE GAZETTE OF INDIA: EXTRAORDINARY (PART II-Soc. 3(ii)]

182. Metal clad switches (upto 30 Amps) 223. PVC pipes upto 110 mm
183. Metal Polish 224. PVC Insulated Aluminium Cables (upto 120 sq. mm)
184. Metallic containers and drums other than N.E.C. (ISS:694)
(Not elsewhere classified) 225. Quilts, Razais
185. Metric weights 226. Rags
186. Microscope for normal medical use 227. Railway Carriage light fittings
187. Miniature bulbs (for torches only) 228. Rakes Ballast
1&8. M.S. Tie Bars '22.9. Razors
189. Nail Cutters 230. R.CC Pipes upto 1200 mm. dia
190. Naphthalene Balls 231. RCC Poles Prestressed
191. Newar 232. Rivets of all types
192. Nickel Sulphate 233. Rolling Shutters
193. Nylon Stocking 234. Roof light Fittings
194. Nylon Tapes and Laces 235. Rubber Balloons
195. Oil Bound Distemper 236. Rubber Cord '~
196. Oil Stoves (Wick stoves only) 237. Rubber Hoses (Unbranded)
197. Pad locks of all types 238. Rubber Tubing (Excluding braided tubing)
198. Paint remover 239. Rubberised Garments Cap and Caps etc 'f

199. Palma Rosa Oil 240. Rust/Scale Removing composition

200. Palmgur 241. Safe meat and milk
j 201. Pans Lavatory Flush 242. Safety matches
202. Paper conversion products- paper bags, envelops, 243. Safety Pins (and other similar products like paper
Ice-cream cup, paper cup and saucers and paper pins, staples pins etc.)
Plates 244. Sanitary Plumbing fittings
203. Paper Tapes (Gummed) 245. Sanitary Towels
204. Pap pads 246. Scientific Laboratory glass wares (Barring
205. Pickles and Chutney sophisticated items)
206. Piles fabric 247. Scissors cutting (ordinary)
207. Pillows 248. Screws ofall types including High Tensile
208. Plaster of Paris 249. Sheep skin all types
209. Plastic Blow Moulded Containers upto 20 litre 250. Shellac
excluding Poly Ethylene Terphthalate (PET) 251. Shoe laces
Containers
252. Shovels
2!0. Plastic cane
253. Sign Boards painted
211. Playing Cards
254. Silk ribbon
212. Plugs and Sockets electric upto 15 Amp
255. Silk Webbing
213. Polythene bags
2.56. Skiboots and shoes
214. Polythene Pipes
257. Sluice Valves
215. Post Picket (Wooden)
258. Snapfastn~r (Excluding 4 pcs. ones)
216. Postal Lead seals
259. Soap Carbolic
217. Potassium Nitrate ')
2ro. Soap Curd
218. Pouches
261. Soap Liquid
219. Pressure Die Casting upto 0.75 kg
262. Soap Soft
220. Privy Pans
263. Soap washing or laundary soap
221. Pulley Wire
264. Soap Yellow
222. PVC footwears
265. Socket/pipes
['WT II ~ 3(ii)] 23

266. Sodium Nitrate 307. Transistor Radio upto 3 band

267. Sodium Silicate 308. Transistorised Insulation - Testers
268. Sole leather 309. Trays
2@. Spectacle frames 310. Trays for postal use
270. Spiked boot 311. Trolley
271. Sports shoes made out of leather (for all Sports 312. Trollies - drinking water
games) 313. Tubular Poles
272. Squirrel Cage Induction Motors upto and including 314. Tyres and Tubes (Cycles)
100 KW440 volts 3 phase
315. Umbrellas
273. Stapling machine
316. Utensils all types
274. Steel Almirah
317. Valves Metallic
275. Steel beds stead
318. Varnish Black Japan
276. Steel Chair
319. Voltage Stablisers including C.V.T's
277. Steel desks
320. Washers all types
278. Steel racks/shelf
321. Water Proof Covers
279. Steel stools
322. Water Proof paper
280. Steel trunks
323. Water tanks upto 15,000 litres capacity
281. Steel wool
324. Wax sealing
282. Steel and aluminium windows and ventilators
325. Waxed paper
283. Stockinet
326. Weighing Scale
284. Stone and stone quarry rollers
327. Welded Wiremash
285. Stoneware jars
328. Wheel barrows
286. Stranded Wire
329. Whistle
287. Street light fittings
330. Wicks cotton
288. Student Microscope
331. Wing Shield Wipers (Arms and Blades only)
289. Studs (excludinc high tensile)
332. Wire brushes and Fibre Brushes iI
290. Surgical Gloves (Except Plastic)
333. Wire Fencing and Fittings
291. Table knives (Excluding Cutlery)
334. Wire nails and Horse shoe nails
292. Tack Meta!lic
335. Wire nettings of gauze thicker than l 00 mesh size
293. Taps
336. Wood Wool
294. Tarpaulins
337~ Wooden ammunition boxes
295. Teak fabricated round blocks
338. Wooden Boards
296. Tent Poles
339. Wooden Box for Stamps
297. Tentage Civil/Military and Salitah Jute for Tentage
340. Wooden Boxes and Cases N.E.C. (Not elsewhere
298. Textiles manufactures other than N.E.C. (not classified)
elsewhere classified)
341. Wooden Chairs
299. Tiles
342. Wooden Flush Door Shutters
300. Tin Boxes for postage stamp
343. Wooden packing cases all sizes
301. Tin can unprinted upto 4 gallons capacity (other
344. Wooden pins
than' can O.T.S.)
345. Wooden plugs
302. Tin Mess
346. Wooden shelves
303. Tip Boots
347. Wooden veneers
304. Toggle Switches
348. Woollen hosiery
305. Toilet Rolls
349. Zinc Sulphate
306. Transformer type welding sets conforming to
IS:l291/75(upto600 amps) · 350. Zip Fasteners
 '

; J _>: ;~

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and Published by the Controller of Publications. Delhi-I I 0054.