The Goan industry demanded the restoration of the Preferential Purchase Incentive Scheme (PPIS) 2008, stating that; it benefitted micro small and medium enterprises (MSMEs) in the state.
The scheme implemented by the Directorate of Industries Trade and Commerce (DITC) gave preference to local MSMEs in tenders floated by various state government departments, autonomous bodies, corporations and semi-government bodies. The scheme commenced in 2008 and was extended periodically until it expired on March 31, 2021.
The request for extension was by the GCCI to the Industry Minister Mauvin Godinho. In the communication to the minister, GCCI said that, the scheme must be extended for a further period of three years effective from April 1, 2021, so that the benefits lost during the intervening period are compensated to the best extent possible.
Rohan Bhandare, Chairman, GCCI Taxation Committee stated that the scheme was a boon to the MSMEs in Goa.
The benefits included concessions in the cost of the tender document, earnest money deposit, and priority in payment, amongst others.
The scheme allows MSMEs to match the lowest tender price floated by non-small scale units provided the quoted price is within 15 per cent of lowest quoted price floated by non- MSMEs.
“In case of contractual tenders for installation, commissioning of machinery / items, etc. the preference of quoted price, the pro-rata percentage over and above the lowest quotation shall be granted to the concerned MSME for being qualified to match the lowest one,” says the scheme.
For the purpose of availing benefit under the scheme, MSMEs have to match the standard of quality as required by the government department. The scheme is applicable even for the purchase of computer hardware and other electronic items except in cases of purchases of education department.
“MSMEs are important revenue sector to the state government. At the all-India level, they contribute more than 29 per cent to the GDP and are responsible for 50 per cent of the country’s total exports. They are also accountable for one-third of the manufacturing output,” said GCCI.