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Preference For MSME

While MSME Sector has received serious jolt during COVID-19 Pandemic, 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.

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

In order to enhance income and employment generation in the State, Odisha Government has decided to promote Micro and Small Enterprise and Start-Ups by providing preference in Public Procurement.

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

Department of MSME will act as Nodal Department for issuing any special Provisions for local suppliers under ‘Make In Odisha’ initiative in line of Public Procurement as preference given in ‘Make In India’ Order issued by Government of India.

So far purchase from the list of goods and services reserved for exclusive purchase from Micro and Small Enterprises and Start-Ups located within Odisha, 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.

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

Director of Export Promotion and Marketing (EPM) will enter into contract with local MSE and Start-ups in respect of goods included in the Exclusive List as notified by Department of MSME and purchase of such good by State Government, organizations, 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 Department of MSME.

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 say.

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 percent of the value of the contract, officials say.

Detailed guidelines in this regard will be issued by Department of MSME for providing preference to local MSEs and Start-ups, officials say.