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, supports the Micro and Small Scale Enterprise (MSE) sector. It does so by extending preferential treatment to registered MSEs in government tenders and purchases.

Key provisions include price matching for bids within 15% of the lowest non-MSE price, lower tender document costs, reduced earnest money deposits, and assured priority in payments with interest on delays. The scheme encourages adherence to quality standards and seeks to expand MSE growth by making government procurement more accessible and financially favourable. It operates across state government departments, autonomous bodies, corporations, and semi-government departments in Goa.

The initiative acts as a support mechanism for local businesses, helping them compete with larger enterprises and secure government contracts, which contributes to the state's economic development and employment generation. By lowering financial entry barriers and ensuring timely payments, the Goa government aims to foster a more inclusive environment for its micro and small enterprises.

- **Step 1: Tender Participation** Submit bids in 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, priced at a maximum of ₹200, and pay the earnest money, capped at ₹500. Adhere to the quality standards set 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 Preferential Payment** Following the supply of goods or completion of the tendered work, your enterprise is entitled to preferential payment, to be settled 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 status 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 quoted price of an eligible MSE is compared with bids from non-MSE entities. Where the MSE's price falls within 15% of the lowest non-MSE bid, the MSE may be invited to match that lower figure. Adherence to the prescribed quality standards is a compulsory condition for receiving the scheme's advantages. Ultimately, tender selection rests on competitive bidding, with the preferential terms applied as described.