Preferential Purchase Incentives for Micro and Small Enterprises Scheme

Key Features

• Price Matching Advantage - Under the scheme, Micro and Small Enterprises are allowed to match the lowest tender price quoted by a non-MSE bidder if their quoted price is within 15% of the lowest quoted price. This ensures that MSEs have a fair opportunity to secure government contracts.
• Preference Among Eligible MSEs - If multiple Micro or Small Enterprises fall within the eligible price range, the lowest quoted MSE bidder among them will be given preference for awarding the tender.
• Preference in Installation or Contractual Tenders - For tenders involving installation, commissioning of machinery, or similar works, the eligible MSE can still be considered by allowing a pro-rata percentage advantage above the lowest quotation.
• Quality Compliance Requirement - Enterprises availing benefits under this scheme must ensure that the goods or services supplied meet the quality standards specified by the government department.
• Applicability to Government Procurement - The scheme applies to purchases made by Government Departments, Autonomous Bodies, Corporations, Semi-Government Departments, including procurement of computer hardware and electronic items (except purchases by the Education Department).
• Reduced Tender Cost and Earnest Money Deposit - To encourage participation by small businesses, the scheme caps the tender document fee at ₹200 and earnest money deposit at ₹500, lowering the entry barriers for MSEs.
• No Security Deposit Requirement - Unlike many government tenders, this scheme removes the requirement of additional security deposits for eligible Micro and Small Enterprises.
• Priority Payment Mechanism - Government departments must make payments to MSE suppliers within 60 days after delivery of goods or completion of work. If payment is delayed, the department must pay interest at 0.75% per month.

Financial Assistance

Eligibility Criteria

To avail benefits under the scheme:

• The applicant must be a Micro or Small Enterprise.
• The enterprise must be permanently registered or acknowledged with Entrepreneurs Memorandum Part II issued by the Directorate of Industries, Trade & Commerce, Goa.
• The enterprise must have annual turnover not exceeding ₹6 crore for the preceding three financial years.
• The enterprise must comply with quality standards specified by the government department issuing the tender.

Documents Required

• Permanent Registration Certificate / Entrepreneurs Memorandum II
• Proof of enterprise turnover for the last three financial years
• Tender participation documents issued by the government department
• Any additional documents required under specific tender conditions

Application Process

Option 1: Apply with Bullit, Recommended

Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.

Option 2: Apply Online / Offline (Government Process)

1. Ensure Registration - The enterprise must be permanently registered or acknowledged with Entrepreneurs Memorandum II by the Directorate of Industries, Trade & Commerce, Goa.
2. Participate in Government Tenders - Eligible enterprises can participate in tenders issued by government departments, corporations, and autonomous bodies.
3. Claim Preferential Benefits - During the tender evaluation process, the enterprise may claim preferential treatment such as price matching benefits and reduced tender fees.
4. Quality Verification and Award of Contract - The enterprise must meet the required quality standards to be eligible for the contract award.
5. Supply Goods / Services and Receive Payment - After delivery or completion of the tendered work, payment must be made within 60 days by the concerned department.