Odisha Cabinet Greenlights Procurement Preference Policy to Boost Micro and Small Manufacturing Enterprises

Bhubaneswar: In a significant move, the State Cabinet granted approval to the Odisha Procurement Preference Policy for Micro and Small Manufacturing Enterprises 2023, targeting the upliftment of Odisha Small (and Micro) Manufacturing Enterprises (OSMEs) with an annual turnover not exceeding Rs 50 crores.

This policy, exclusively for the procurement of goods by State Government establishments, seeks to bolster OSMEs and extend benefits to startups with an annual turnover of up to Rs 50 crores. Notably, the policy is not applicable to the procurement of services, work contracts, and EPC contracts.

Key highlights of the policy:

Exclusive List Provision: A designated ‘Exclusive List’ will enlist goods produced by a substantial number of OSMEs. State Government establishments must procure such goods exclusively through competitive bidding limited to Odisha Small Manufacturing Enterprises, facilitated by intra-state tender processes. The Exclusive List will evolve over time as items get enlisted under it.

Open Tender Process: Goods not enlisted under the Exclusive List will undergo procurement through an open tender process.

Price Preference for OSMEs: Odisha Small Manufacturing Enterprises participating in open tenders will enjoy a price preference margin of 10% for 25% of the total procurement quantity.

The Odisha Procurement Preference Policy aims to stimulate local manufacturing enterprises, foster competitiveness, and contribute to the overall growth of micro and small businesses in the state. Once implemented, the policy is expected to create a conducive environment for the sustainable development of these enterprises, aligning with the government’s vision for economic empowerment and self-reliance.