Gujarat Govt announces New Purchase Policy with incentives for MSMEs, women-run businesses

AHMEDABAD : The Gujarat Government on Saturday announced its purchase policy 2024 with special incentives for MSMEs and women entrepreneurs in the government procurement of goods and services.

The Gujarat Purchase Policy 2024, announced under the direction of Chief Minister Shri Bhupendra Patel, will be implemented from April 1, and remain in force till another policy is announced, incorporating any amendments or additional provisions, the chief minister’s office (CMO) stated in a release.

The new policy will cover the procurement of goods and services by all state government departments, HODs, district offices, authorities, grant-in-aid institutions, boards, corporations and societies, it said.

‘Through this policy, the government aims to provide special incentives for MSMEs and women-powered industries in government procurement in keeping with the Prime Minister’s mantra of ‘Vocal for Local’,’ the release said.

The new policy will encourage procurement from micro, cottage, and small enterprises (MSMEs), especially ones owned by Scheduled Castes, Schedules Tribes and women entrepreneurs, it said.

It will also support procurement from Gujarat-based MSEs, compared to other suppliers, and encourage startups in the state, it said.

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 said.

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