FCIK lauds unveiling of Procurement Preference Policy

Srinagar, Nov 15: The Federation of Chambers of Industries Kashmir (FCIK) has warmly welcomed the Jammu and Kashmir government's introduction of the Draft Procurement Preference Policy for Micro and Small Enterprises (MSEs) describing it as the "first gift" from the new Omar Abdullah-led government towards revitalizing the local industrial sector.

In a statement, the valley’s apex industrial chamber highlighted that after more than five years of exclusionary policies that left the majority of local industrial units struggling, this move marks a long-awaited and significant step toward restoring industry confidence and providing the much-needed momentum for its revival.

“ We are extremely thankful to Chief Minister Omar Abdullah for his visionary leadership and steadfast commitment to empowering local enterprises, recognizing the crucial role that the region's industries play in driving economic growth and creating employment opportunities”, said FCIK President Shahid Kamili.

The chamber also expressed its gratitude to Deputy Chief Minister Surinder Kumar Choudhary, Chief Minister's Advisor Nasir Aslam Wani, and Chief Secretary Attal Dulloo for their support in directing 30% of government procurement towards registered local MSEs, a move that is expected to provide a much-needed boost to the local economy.

Kamili expressed satisfaction that desired provisions in the procurement policy, including price preferences, reserved procurement quotas, and waivers on Earnest Money Deposits (EMDs) and application fees, offer local businesses an unprecedented opportunity to actively participate in tendering process of government contracts.

“The waiver of the minimum turnover requirement and other related conditions for local units will enable them to participate more easily in the procurement process under the policy”, he added.

However, FCIK believes that the policy needs further refinement, especially with a focus on the needs of the region’s manufacturing units. These units, which are often at the heart of local economies, need more tailored provisions to address their specific challenges.

The chamber will advocate for a fair share of composite civil contracts, where industrial goods are bundled with the service components. The chamber's proposed course of action is either to separate the industrial goods from these composite contracts for independent procurement or to make MSEs eligible to participate in the service component of the contract as well.

FCIK will also seek revisions and further clarification on the distribution of orders to ensure a more equitable allocation among all local tenderers, following the award of 30 percent to the lowest bidder.

FCIK has also commended the government’s emphasis on quality standards, vendor development programs, and the introduction of a digital dashboard for tracking procurement, which will bring greater transparency and accountability to the process besides improving the competitiveness of local manufacturers to meet national and international standards.

The Chamber is actively engaging with relevant authorities to shape the policy further, ensuring it maximizes benefits for the manufacturing sector and enhances its ability to contribute to the region's economic resilience.

While expressing appreciation for the government’s proactive approach in addressing marketing challenges faced by local industries, FCIK remains optimistic that, through continued collaboration, the draft policy will be further refined and fine-tuned.

“Once implemented, the policy is poised to empower local MSEs and lay the foundation for sustainable industrial growth in Jammu and Kashmir, marking the beginning of a new era of self-reliance and economic prosperity for the region”, hoped FCIK President adding that FCIK is also pursuing other options to obtain marketing support for the local units.