Srinagar, Mar 01: In a move aimed at bolstering the growth and competitiveness of Micro, Small, and Medium Enterprises (MSMEs), the Jammu and Kashmir Government has announced a new procurement policy.
According to an official communication from the Finance Department, the policy will grant price and purchase preference to MSMEs in tenders and bids. Aligned with the MSMEs order issued by the Finance Department on 11-01-2020, the new policy aims to provide a level playing field for MSMEs in government procurement processes.
Under the policy, MSMEs quoting a price within 15% of the lowest bidder (L1) will be permitted to supply a portion of the requirement by matching the L1 price. In cases where the L1 bidder is not an MSME, MSMEs will be allowed to supply up to 25% of the total tendered value.
Additionally, each department or Public Sector Undertaking (PSU) is mandated to procure a minimum of 25% of their total annual procurement of goods and services from MSMEs, with 3% earmarked for MSMEs owned by women.
To validate their status, MSMEs must possess aUdyogAadhar, a unique identification number for MSMEs. Furthermore, 358 items exclusively reserved for purchases from MSMEs must be sourced solely from MSMEs on the Government e-Marketplace (GeM) portal, an online platform for public procurement.
The circular also outlines the procedure to be followed on GeM for granting price and purchase preference to MSMEs, enclosed as an annexure to the circular.
All administrative departments are urged to disseminate the instructions to their subordinate offices and agencies to ensure strict compliance. The Industries and Commerce Department is tasked with facilitating and advising MSMEs from Jammu and Kashmir to register themselves on the GeM portal.
