Effective from April 1, 2024, the Gujarat State Procurement Policy 2024 mandates a shift towards digital procurement, emphasizing transparency, efficiency, and support for local enterprises.
Mandatory Use of GeM
All state government departments, public sector units, and affiliated bodies are required to procure goods and services through the Government e-Marketplace (GeM). Exceptions are permitted only when items are unavailable on GeM, necessitating prior approval from the Industries Commissioner or the Industries and Mines Department.
E-Tendering for High-Value Procurements
Procurements exceeding ₹1 lakh, including those via GeM, must be conducted through e-tendering processes. This ensures competitive bidding and adherence to standardized procurement procedures.
Support for MSMEs and Startups
The policy offers significant incentives to Micro, Small, and Medium Enterprises (MSMEs) and startups:
- Exemptions: Gujarat-based MSMEs and startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) are exempted from paying tender fees and Earnest Money Deposits (EMD).
- Security Deposits: For orders up to ₹5 lakh, these entities are also exempt from providing security deposits.
- Relaxed Criteria: Startups are exempt from minimum prior experience and turnover requirements, facilitating their participation in government procurement.
Purchase Preferences
To promote local enterprises, the policy outlines a hierarchy for purchase preferences:
- Class-I Gujarat MSEs
- Class-I Local Suppliers
- Class-II Gujarat MSEs
- Class-II Local Suppliers
- Non-local suppliers
A purchase preference margin of up to 20% over the lowest bid (L1) is allowed, provided the supplier matches the L1 price.
Procurement Without Tender
The policy permits procurement without tender under specific conditions:
- Up to ₹15 lakh from government-owned institutions or PSUs
- Up to ₹5 lakh from government-recognized institutions
- Up to ₹15 lakh from startups
These provisions aim to simplify procurement processes for smaller transactions and encourage participation from emerging enterprises.
Emphasis on Local Content
Suppliers are required to declare the percentage of local content in their products or services. For procurements exceeding ₹10 crore, a certificate from a statutory auditor or practicing chartered accountant is mandatory to verify local content claims.
Emergency Procurements
In extraordinary situations like natural disasters or epidemics, emergency procurements can be made with a reduced tender duration, subject to specific approvals and justifications.
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