Gujarat: Procurement policy to empower women entrepreneurs, MSMEs

In a bid to invigorate the Micro, Small, and Medium Enterprises (MSMEs) sector while fostering women entrepreneurship, Gujarat government recently  announced a new Procurement Policy 2024 through which it plans to encourage MSME units and women entrepreneurs to sell more products to the state.This policy aims to provide a significant impetus to the state's economic growth by ensuring greater participation of MSMEs and women-owned businesses in government procurement processes.
The policy, which will come into force on April 1, will also encourage procurement from startups and entities operated by Scheduled Castes and Tribes, stated an official release here. Startups have been exempted from criterias like minimum prior experience and turnover. It will also support procurement from Gujarat- based MSEs, compared to other suppliers, and encourage startups in the state.
The policy promotes local suppliers by exempting eligible suppliers from tender fees and earnest money deposits (EMD). Under the policy, the state government has fixed various limits in the range of Rs 5 lakh to Rs 15 lakh for purchases without tender process,the release stated. Additionally, startups have been exempted from minimum prior experience and minimum turnover requirement criteria resulting in a boost to their businesses.
The policy also prioritises procurement of goods and services from suppliers with high value-addition in India and Gujarat.A global tender inquiry will be issued only in cases where the estimated procurement cost of the items is more than Rs 200 crores, the release said. The policy also stipulates that all procurement of goods and services above Rs 1 lakh, including procurement through the Government-e-Marketplace (GeM) portal, shall be done through e-tender only.As per the release, the state government purchased goods and services worth Rs 1.47 lakh crore in 2022-23 under the existing Gujarat Purchase Policy 2016.

(Ira Singh, Asstt Editor, Gandhinagar)