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Delhi Govt seeks feedback on Draft Procurement policy for MSEs

Updated: May 09, 2018 09:02:26am
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Delhi Govt seeks feedback on Draft Procurement policy for MSEs

New Delhi, May 9 (KNN) Paving way for the MSMEs to get fair share of business from the Public Sector Units, Delhi Government has come up with and sought inputs on the Draft Procurement policy for MSEs of NCT of Delhi.

The Delhi Governments intents to ensure the implementation of provisions of MSME Development Act 2006 of Government of India, extant policies of the state and to address the typical needs and requirements to support the marketing in a focused manner and to accelerate the pace of growth of Micro and Small Enterprises Sector by enhancing competitiveness.

In this regard the Department of Industries has come out with a Draft Procurement policy for MSEs of NCT of Delhi.

“The feedback/suggestion of various stakeholders are very important to consider and incorporate in the policy. Therefore, it is requested that the feedback/suggestion on the draft policy may please be provided as soon as possible,” Santosh Kumar, Assistant Commissioner (Industries) said in a communication to an industry association head.

The policy framework will be known as “Delhi Procurement Preference Policy for Micro and Small Enterprises, 2018” and it would emphasize on the mandatory procurement preference to broaden the marketing avenues.

The proposed policy necessitates - Coordination among  the  Departments & Agencies under GNCTD; Involvement of stake holders; Emphasizing on quality production of goods and services provided; Enhancing competitiveness with cost reduction; and Emphasis on timely action.

The draft policy mandates that the State Government Department and Agencies & Public Sector Undertakings under Government of NCT of Delhi, MoU signed projects in Delhi, Power Generation Companies & Power Distribution Companies, Union Government/State Government aided projects/externally aided projects being executed in Delhi and funded by donor agencies shall procure minimum of twenty per cent (20%) of their annual value goods or services from local Micro & Small Enterprises.”

The Industries Department, Governmentt of NCT of Delhi will be the Nodal Agency for implementation of the provisions of this Policy and issue of detailed guidelines thereof.

The draft also mandates that in tenders, participating MSEs must be registered under Delhi GST and must have GST clearance Certificate.

“Evaluation of tender papers of Micro and Small Enterprises shall be made on the basic price including price preferences & other charges but excluding GST, taxes etc as per the provisions notified by Finance Department, Government of NCT of Delhi from time to time,” it noted.

With regards to price quotation in the tenders, participating MSEs quoting price within price band of L1+15 per cent shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price is from someone other than a MSE and such MSE shall be allowed to supply up to 20 per cent of total tendered value.

In case of more than one such MSE, the supply shall be shared proportionately (to tendered quantity). Also, inspection of supplying MSEs may be conducted by the procuring Department /Agencies.

The draft policy extends special provisions for MSEs owned by SCs/ STs, Physically Challenged & Women Entrepreneurs.

Out of 20 percent target of annual procurement from Micro and Small Enterprises, a sub-target of 20 percent (i.e, 4 percent of the total) shall be earmarked for procurement from Micro and Small Enterprises owned by the Scheduled Castes or Scheduled Tribes, Physically Challenged & Women entrepreneurs.

“Provided that, in the event of failure of such Micro and Small Enterprises to participate in tender process or meet tender requirements and L1 price, 4 percent sub-target earmarked for Micro & Small Enterprises owned by SC/ST/ Physically Challenged shall be met from the other Micro and Small Enterprise,” the draft policy said.

The data on target set with respect to procurements and achievement made thereto from local MSEs shall be made available in the website of Government Departments and Agencies under the control of GNCTD and other agencies on annual basis.

Further, to reduce transaction cost of doing business, MSEs shall be facilitated by providing them the fiscal incentives enunciated in the extant policies of the Government such as price preference including additional price preference, exemption from payment of earnest money and payment of 25 per cent of prescribed security deposit, adopting e-procurement to bring in transparency in tendering process.

The policy will come into force with effect from its Notification. (KNN Bureau)

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