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Procurement

State comes up with mandatory procurement policy

In order to enhance income and employment generation in the State, the Odisha Government has decided to promote micro and small enterprise and start-ups by providing preference in public procurement.

Principal Secretary Finance Ashok Kumar Meena has issued Office Memorandum (OM) on October 16, which will help the MSME sector in a big way, feel entrepreneurs and officials as well.

While the MSME sector has received serious jolt during Covid-19 pandemic, the State Government has come up with such an option for providing more preference to the MSEs and start-ups, which will generate more job opportunities in the State.

 The State Government will provide mandatory procurement of any goods or services from any category of bidders or give preference to bidders on the ground of promotion of locally manufactured good or locally provided services under ‘Make In Odisha’ initiatives.

 The Department of MSME will act as Nodal Department for issuing any special provisions for local suppliers under ‘Make In Odisha’ initiative in line with public procurement preference given in ‘Make In India’ order issued by the Government of India.

So far for purchase from the list of goods and services reserved for exclusive purchase from MSEs and start-ups located within Odisha, the Department of MSME will notify from time to time as per terms of Odisha MSME Development Policy and Odisha Procurement Preference Policy for Micro and Small Enterprises.

The buyers will have option of buying the items, included in the Exclusive List from GeM in case they are not able to get the items in desired quality and quantity.

In such a case, permission for buying goods can be obtained from next higher authority with sufficient justification.

 The Director of Export Promotion and Marketing (EPM) will enter into contract with local MSEs and start-ups in respect of goods included in the Exclusive List as notified by the Department of MSMEs and purchase of such good by State Government, organisations, PSUs cooperative should be only with whom such rate contracts have been entered into by placing order in accordance with the procedure outlined for this purpose.

The quantum and manner of purchase preference  to local MSEs and start-ups in public procurement shall be notified by the Department of MSME.

The State Government has relaxed prior turnover and prior experience criteria in bidding document.

The condition of prior turnover and prior experience may be relaxed/ waived for local MSEs and start-ups, subject to meeting of quality and technical specifications, officials said.

 In order to ensure due performance of the contract, performance security is to be obtained from the successful bidder awarded contract. Performance security should be for an amount of five to ten per cent of the value of the contract, officials said.

Detailed guidelines in this regard will be issued by the Department of MSMEs for providing preference to local MSEs and start-ups.

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