Gujarat’s new purchase policy focuses on SME sector

The Gujarat government’s Purchase Policy-2016 announced on Wednesday, focuses on providing a level playing field to small, micro and cottage industries in the state.

Announced by Chief Minister Anandiben Patel, the policy will also focus on increasing employment opportunities in the SME sector, as they would now be given preference by state departments while procuring various items.

The policy mandates that departments will have to purchase only those items which are produced in India. If any item, which the government wishes to procure, is not produced in India, then the department concerned can buy an imported item with prior approval of department's secretary, an official press release said.

To encourage small, micro and cottage industries registered in the state, the government has exempted such units from paying tender form fees as well as Earnest Money Deposit(EMD) while taking part in the government bidding. This relief is also applicable to government recognised institutions working for betterment of the visually impaired, deaf and mute people as well as for those working for mentally challenged children, stated the release. In addition, such eligible units will be given benefit of 10 per cent price difference in comparison to the bidding price quoted by large and medium units for a government floated tender.

Government departments have been clearly instructed that under the policy, all the direct purchases, which are made without floating a tender, must be made from such eligible units or from those which are run by government, including self help groups, jails and various government corporations, such as Gujarat Agro Industries Corporation and Gujarat State Handloom and Handicraft Development Corporation, the release said.