Gujarat Government Unveils Purchase Policy to Boost MSMEs

The Gujarat government recently unveiled the Gujarat Purchase Policy 2024, which aims to provide special incentives to Micro, Small, and Medium Enterprises (MSMEs) and female entrepreneurs in government procurement of goods and services.

Implementation and Duration:

Effective April 1, the policy will remain in force until the state government introduces a subsequent policy with additional provisions or alterations.

Under the directive of CM Bhupendra Patel, the policy encompasses procurement activities across various government departments, district offices, authorities, and more, as stated by the Chief Minister’s Office (CMO) via an official release.

As reported by PTI, the policy aims to provide special incentives to MSMEs and female-led industries in government procurement, aligning with the Prime Minister’s ‘Vocal for Local’ initiative.

Gujarat Government Boosting MSMEs and Supporting Entrepreneurs:

With a focus on micro, cottage, and small enterprises (MSMEs), particularly those owned by Scheduled Castes (SCs), Scheduled Tribes (STs), and women, the policy seeks to stimulate procurement activities. Additionally, it aims to support MSMEs outside the state and promote startups within Gujarat.

Local suppliers are exempted from tender fees and earnest money deposits (EMDs), with set limits ranging from Rs 5 lakh to Rs 15 lakh for purchases without the tender process. Startups are granted relaxation from minimum prior experience and turnover requirements to foster their participation.

Emphasis on Local and Value Addition:

The policy emphasizes procuring goods and services from suppliers offering high-value additions in India and Gujarat.

As outlined in the government’s policy, procurements exceeding Rs 1 lakh are mandated to be conducted via e-tendering, including transactions facilitated through the Government e-Marketplace (GeM) portal.

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