Preferential Purchase Incentives for Micro and Small Enterprises Scheme

The Preferential Purchase Incentives for Micro and Small Enterprises Scheme, introduced in 2008 by the Directorate of Industry, Trade & Commerce, Government of Goa, targets the Micro and Small Scale Enterprise (MSE) sector. It provides registered MSEs with preferential treatment in government tenders and purchases.

Benefits include price matching for bids within 15% of the lowest non-MSE price, lower tender document costs, reduced earnest money deposits, and priority in payments with interest on delays. The scheme encourages adherence to quality standards and is implemented across state government departments, autonomous bodies, corporations, and semi-government departments in Goa.

By lowering financial barriers to participation and ensuring timely payments, the initiative enables local businesses to compete with larger enterprises and secure government contracts, supporting economic development and job creation in the state.

- **Step 1: Tender Participation** Bid on tenders issued by Government Departments, Autonomous Bodies, Corporations, or Semi-Government Departments operating in Goa.

- **Step 2: Document Procurement and Earnest Money Deposit** Secure the tender documents for a fee capped at ₹200, and pay earnest money not exceeding ₹500. Adhere to the quality standards laid down by the State Government Department.

- **Step 3: Price Alignment** Should your quoted price fall within 15% of the lowest bid submitted by a non-Micro or Small Enterprise, you may align your price with that lowest tender. For contractual tenders, benefit from the pro-rata percentage preference.

- **Step 4: Guaranteed Priority in Payment** Following the supply of goods or completion of the tendered work, confirm that your enterprise receives payment on a priority basis, with settlement due within 60 days. If payment is delayed, the concerned department must pay interest at 0.75% per month.

Applications are assessed against the enterprise's standing as a Micro or Small Scale Enterprise (MSE) with permanent registration under the Directorate of Industry, Trade & Commerce, Government of Goa. In the tender evaluation, the price submitted by an eligible MSE is compared with bids from non-MSE entities. Where the MSE's quoted price falls within 15% of the lowest non-MSE bid, the enterprise is permitted to align its price with that lowest figure. Adherence to the prescribed quality standards is a compulsory condition for receiving the scheme's advantages.

The final award of a tender is determined through competitive bidding, with the preferential conditions described above applied during the evaluation.