Launched in 2008, the Preferential Purchase Incentives for Micro and Small Enterprises Scheme is a significant initiative by the Directorate of Industry, Trade & Commerce, Government of Goa to promote and support Micro and Small Enterprises (MSEs) by offering them preferential access in government procurement. This scheme aims to boost the competitiveness of MSEs by facilitating easier entry into public sector supply chains.
Implemented across Government Departments, Corporations, Autonomous Bodies, and Semi-Government Entities, the scheme also ensures timely payment, relaxed financial requirements, and encourages quality compliance by MSEs.
Benefits
• Price Matching: MSEs can match the lowest bid by non-MSEs if their quote is within 15% of the lowest bid
• Pro-rata Consideration: In contract-based tenders (e.g., installation/commissioning), MSEs are allowed pro-rata preference to qualify for matching
• Tender Document Cost: Tender documents provided at a maximum cost of ₹200
• Earnest Money: Not more than ₹500
• No Security Deposit required
• Priority Payment: Departments must make payment within 60 days of delivery/completion
• Interest for Delay: If payment is delayed, 0.75% interest per month will be payable
Eligibility
• The unit must be a Micro or Small Scale Enterprise
• The unit must have an annual turnover not exceeding ₹6 crore in each of the preceding three financial years
• The enterprise must be permanently registered or possess acknowledgment of Entrepreneurs Memorandum II with the Directorate of Industries, Trade and Commerce, Goa
Application Process
Offline Process Only
Step 1: Participate in Government Tenders
Apply to tenders released by eligible government entities. Obtain the tender documents at a subsidized rate (max ₹200).
Step 2: Submit Earnest Money Deposit (EMD)
Deposit a maximum of ₹500 as EMD as per the tender requirement.
Step 3: Quality Compliance
Ensure that the goods or services offered meet the quality standards specified by the Government department.
Step 4: Price Matching
If your quote is within 15% of the lowest quote from a non-MSE, you’ll be invited to match the lowest price to win the contract. Pro-rata considerations apply to contractual tenders.
Step 5: Payment & Monitoring
Upon successful delivery/completion, payment must be made within 60 days. Delay beyond this period incurs 0.75% interest per month to the MSE.
Documents Required
• Permanent Registration Certificate or Entrepreneurs Memorandum II Acknowledgment from Directorate of Industries, Trade & Commerce
• Proof of Turnover: Audited financials showing turnover ≤ ₹6 crore for each of the last 3 financial years
Frequently Asked Questions (FAQs)
Q1: What price matching benefit do micro-enterprises get in government tenders?
If your quote is within 15% of the lowest bid by a non-MSE, you can match the lowest price to win the contract.
Q2: What should be the turnover to qualify for this scheme?
Your enterprise’s annual turnover should not exceed ₹6 crore in each of the last 3 financial years.
Q3: What documentation is needed for eligibility?
Permanent registration or acknowledgment with Entrepreneurs Memorandum II, and financial proof of turnover.
Q4: How much earnest money is required?
Only ₹500 maximum.
Q5: What is the tender document cost for MSEs?
A maximum of ₹200.
Q6: When will the government make payments?
Within 60 days of delivery or completion of work.
Q7: Is there special pricing consideration in machinery installation tenders?
Yes, MSEs get a pro-rata preference to match the lowest quote.
Q8: Can micro-enterprises selling computer hardware avail this scheme?
Yes, except for purchases by the Education Department.
Q9: What quality standards must be followed?
The enterprise must meet the standard of quality required by the Government Department.
Q10: Who must implement these benefits?
All Government Departments, Autonomous Bodies, Corporations, and Semi-Government Departments in Goa.