Govt. drafts J&K 2024 Procurement Policy to Empower Local Micro, Small Enterprises

New policy prioritizes 30% govt. procurement for local MSEs; seeks suggestions from stakeholders

SRINAGAR: The Jammu and Kashmir government has introduced the Draft Procurement Preference Policy for Micro and Small Enterprises (MSEs) for 2024, a landmark move aimed at fortifying the local economy by channelling 30% of government procurement to registered local MSEs.
This new policy provides local businesses with pricing advantages, reserved procurement quotas, and a streamlined process to participate in government tenders, fostering an inclusive environment for economic growth across the Union Territory.
A policy in this regard has been drafted by the Department of Industries and Commerce, Jammu and Kashmir.
Key provisions in the policy include a 25% price preference for local MSEs over non-registered suppliers, easing access to government contracts and creating new opportunities for MSEs to compete.
Registered businesses will benefit from a waiver of Earnest Money Deposits and application fees, significantly lowering financial barriers for local entrepreneurs. With a dedicated portion of procurement set aside for women and SC/ST-owned businesses, the policy actively supports marginalized groups, promoting a more diverse and equitable business ecosystem.
The Directorate of Industries & Commerce will serve as the nodal agency for registration and policy implementation, offering local MSEs the tools to meet quality standards through mandatory certifications and training programs. In collaboration with industry bodies such as the Quality Council of India and IIT Jammu, the government will provide vendor development programs that equip MSEs with skills to elevate product quality and adopt ZED (Zero Defect, Zero Effect) certifications.
To maintain transparency, the policy introduces a digital dashboard where the progress of MSE procurement can be tracked and monitored. The dashboard will provide real-time data on government purchasing trends, feedback mechanisms for MSEs, and tools for government departments to ensure compliance. A UT-level review committee led by the Principal Secretary of the Industries and Commerce Department will oversee policy implementation, address grievances, and monitor the progress towards achieving procurement targets.
Through this policy, the Jammu and Kashmir government seeks to support economic self-sufficiency by empowering local businesses, encouraging fair competition, and creating a foundation for sustainable growth across the region.
The department has sought suggestions from all the stakeholder, including MSME owners, industry association and others.