Procure minimum 25% of annual procurement of goods, services from MSMEs: J&K Govt to deptts, PSUs

Jammu, Mar 2: J&K government Saturday directed all its departments and Public Sector Undertakings (PSUs) to procure a minimum of 25 percent of total overall annual procurement of goods and services from the Micro, Small and Medium Enterprises (MSMEs).

J&K Finance Department, through a circular, has asked all Administrative Departments to instruct all HoDs, DDOS, Corporations, Boards, Local Bodies, PRIs and agencies under them to ensure strict compliance of its instructions on this account.

The Industries and Commerce department has been directed to advise and facilitate the MSMEs from Jammu and Kashmir to register themselves on GEM portal.

Finance department on January 11, 2020, and on February 24, 2023, had issued circular instructions regarding procurement of Goods and Services by government departments and PSUs produced and provided by Micro and Small Enterprises.

As per the circular, in a tender participating MSMEs quoting price within price band of L1 (Lower bid) 15 percent would also be allowed to supply a portion of requirement by bringing their price to L1 price.

“In a situation where L1 price is from someone other than MSMEs, Such MSME shall be allowed to supply up to 25 percent of total tendered value. Every department or PSU shall procure a minimum of 25 percent of total overall annual procurement of goods and services from the MSMES. Out of the total annual procurement from Micro and Small Enterprises, 3 percent from within the 25 per cent target shall be earmarked for procurement from Micro and Small Enterprises owned by women,” the instructions stipulated.

In order to avail price preference, functionalities have been deployed in GeM. A clause has been provided in ATC Library for effective implementation of all the provisions of MSMEs order.

“All the sellers claiming to be MSMEs are required to validate their MSMEs status through Udyog Aadhar. Regarding 358 items which have been reserved exclusively for purchases from MSMEs, the tenders or bids are required to be invited from MSMEs only on the GEM portal,” it has been directed.