The Gujarat government announced the Gujarat Purchase Policy 2024, featuring special incentives for MSMEs and women entrepreneurs in the procurement of goods and services. The policy, directed by Chief Minister Bhupendra Patel, will come into effect on April 1 and continue until any revisions or additional provisions are introduced. This comprehensive policy encompasses the procurement activities of various government entities, aiming to bolster local industries in line with the ‘Vocal for Local’ initiative.
The new policy places emphasis on supporting micro, cottage, and small enterprises (MSMEs), particularly those owned by Scheduled Castes, Scheduled Tribes, and women entrepreneurs. It also advocates for procurement from Gujarat-based MSEs, provides exemptions for eligible suppliers from tender fees and earnest money deposits, and sets specific procurement limits for purchases without tender processes.
Furthermore, the policy significantly benefits startups by exempting them from minimum prior experience and turnover requirements, thereby offering a substantial boost to their businesses. Additionally, it prioritizes the procurement of goods and services from suppliers with high value-addition in India and Gujarat. Notably, global tender inquiries will only be issued for items with an estimated procurement cost exceeding Rs 200 crores, and all procurement exceeding Rs 1 lakh will be conducted through e-tender, including through the Government-e-Marketplace (GeM) portal.
The release highlighted that the state government’s procurement under the existing Gujarat Purchase Policy 2016 amounted to Rs 1.47 lakh crore in 2022-23. These proactive measures showcase the government’s commitment to fostering a conducive environment for local businesses and promoting economic growth within the state.