J&K Govt drafts “Procurement Preference Policy 2024” to boost local businesses

Srinagar, Oct 30: In a strategic move to bolster local businesses in Jammu and Kashmir, the Jammu and Kashmir Trade Promotion Organisation (JKTPO) has drafted the “J&K Procurement Preference Policy 2024,” which is currently under review for final approval by the Industries and Commerce Department.
As per details, the draft policy aims to provide preferential access to government procurement for Micro, Small, and Medium Enterprises (MSMEs) across the Union Territory. The policy draft is available for public input on the JKTPO and Industries and Commerce websites until October 31.
An official from the JKTPO stated that the policy mandates all government departments, public sector units, and autonomous bodies in J&K to source at least 30% of their annual procurement from local MSMEs. This initiative is designed to stimulate local economic growth, empower small businesses, and promote job creation.
The proposed policy introduces a price preference of up to 25% for local MSMEs, enabling them to remain competitive against non-local suppliers, even if their prices are slightly higher. This margin is intended to support local firms in securing contracts while levelling the playing field against larger or external suppliers.
Additionally, the policy outlines targeted sub-reservations within the 30% procurement quota, allocating 4% to enterprises owned by Scheduled Castes and Scheduled Tribes and 3% to women-owned enterprises.
To qualify for this initiative, MSMEs must be registered with the Directorate of Industries & Commerce, J&K, and must meet specific quality and service standards to ensure reliability and consistency in government procurement.
The draft policy also includes vendor development programs and quality assurance initiatives aimed at helping local businesses enhance their competitive edge and improve their capacity to meet government demands. Furthermore, grievance redressal and dispute resolution mechanisms are incorporated to assist MSMEs in resolving procurement-related issues and ensuring smooth transactions with government agencies.
With the draft now available for public review, the J&K government is encouraging stakeholders—including industry associations, business leaders, and the general public—to provide feedback. The official added that the policy is expected to undergo further refinement based on the collected suggestions, bringing Jammu and Kashmir one step closer to a robust local procurement framework.