Letter No: IC/0040/08/2024 Approved Date: 10-09-2024

No.IC/CSPO/2024/

Industries Commissionerate &

Central Store Purchase Organization

Block no.1, 5th Floor,

Udhyog Bhavan, Gandhinagar

Circular
Guidelines for implementation of
Gujarat State Procurement Policy 2024

Gujarat State Procurement Policy 2024 has into force with effect from 01 April 2024 and shall remain operative till the
declaration of a new or revised Policy.

All Government Departments, HODs, District Offices, Authorities, Grant-in-aid institution/ Boards/ Corporations/
Societies of the State shall strictly abide by this Policy. Detailed guidelines for implementation of the Policy are as below.

Policy Related Instructions:

1. It is mandatory for all procuring entity to procure Goods and Services through Government e-Marketplace Portal
(GeM). For procurement of Goods and services other than GeM Portal, due to non-availability on GeM, PRIOR
APPROVAL of Industries Commissioner And/Or Industries and Mines Department (as the case may be) as per IMD
GR dated:03-02-2021 read at (9) and amended from time-to-time is to be obtained.
2. Procurement of goods and services (including procurement through GeM) above Rs.1,00,000, is to be done through e-
tender only.
3. Tender fee mentioned in policy is compulsory for procurement through e-tender only. It is not applicable for
procurement through GeM Portal.
4. Purchase preference shall be given in order of “Class-I Gujarat MSE, Class-I Local Supplier, Class-II Gujarat MSE,
Class-II Local Supplier, Non-local supplier”
5. ‘Margin of purchase preference’ means the margin for purchase preference shall be maximum to the extent of 20%
over the price/rate quoted by L1 bidder. This means price/rate offered by any bidder above 20% of L1 bidder shall not
be eligible for purchase preference.
6. The ‘Class-I Gujarat MSE’, ‘Class-I Local Supplier’ ‘Class-II Gujarat MSE’ and ‘Class-II Local Supplier', shall be
required to indicate percentage of local content.
7. In case of Procurement for a value up to Rs.10 Crores, suppliers shall be required to indicate percentage of local
content and to provide self-certification (in the required format) that the item offered meets the local content
requirement at the time of tender bidding or solicitation. They shall also provide details of the location(s) at which the
local value addition is being done. The Technical Scrutiny Committee shall randomly verify the local content in such
cases.
8. In cases of procurement for a value in excess of Rs. 10 Crore, the ‘Class-I Gujarat MSE’, ‘Class-I Local Supplier’,
‘Class-II Gujarat MSE’ and 'Class-II Local Supplier' shall be required to provide a certificate (in the required format)
from the statutory auditor or cost auditor of the company, if entity is registered under company Act. While in case of
other entity, supplier shall provide certificate from a practicing cost accountant or practicing chartered accountant
certifying the percentage of local content. The Technical Scrutiny Committee shall verify the local content in all such
cases where procurement is for a value in excess of Rs.10 Crore.
9. The minimum average annual financial turnover or actual production of the bidder/ during the last three years, ending
on 31st March of the previous financial year, should be at least twice the bid value. Documentary evidence in the form
of certified Audited Balance Sheets of relevant periods or a certificate from the Chartered Accountant / Cost
Accountant indicating the financial turnover or actual production details for the relevant period shall be uploaded with
the bid. In case the date of constitution / incorporation of the bidder is less than 3-year-old, the average financial
turnover or actual production in respect of the completed financial years after the date of constitution shall be taken
into account for this criteria.
10. For EMD Exemption of MSEs and Startups in procurement of Reserved items, eligible entities to submit required
certificate as mentioned in Procurement Policy’s point no. 4 (A) (a/b/c/f).
11. Once the successful bidder is identified after opening of commercial bid / price bid, the EMD of all other unsuccessful
bidders shall be released by the procuring entity within 7 working days. EMD shall not be deposited in the bank

File No: IC/WRT/e-file/172/2024/0587/CSPO

Approved By: Additional Industry Commisioner,AIC(SP) office,IC

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account. EMD should be in the form of Demand Draft, Pay Order and Bank Guarantee only from banks approved by
Finance Department, Gujarat.
12. For Procurement of Reserved items, it shall be procured from MSEs and Startups recognized by DPIIT under the
Startup India Program and having Undam registration as well as registration with CSPO or National Small Industries
Corporation as a MSE. Moreover, purchase preference of 20% shall be provided to MSEs situated and registered in
Gujarat including start-ups recognized by DPIIT and funded by State Government.
13. ‘Restriction on Public Procurement from Bidders of certain Countries’, IMD Letter No: SPO-102020-UOR-10-CH, Dt.
15/10/2020 has to be strictly followed.
14. Purchase without tender (Procurement Policy’s point no. 8) is only applicable for procurement of Goods manufactured
by the eligible organizations. Procurement without tender clause is not applicable for Services. Procuring entity to
strictly abide by this condition in case of procurement without tender.
15. Rate contract as mentioned under clause 12 of Gujarat State Procurement Policy is not for normal procurement. Rate
contract can be undertaken only for such items which may be required during the year but is not completely
predictable. Rate Contract execution would require prior approval of the Secretary Purchase Committee (SPC) or the
competent apex authority as the case may be.
16. To finalize procurement for all types of goods and services, approval of concerned Purchase Committees as
mentioned in Procurement Policy 2024 shall be required as under. The participation of CSPO officials in each
procurement committee meetings shall be mandatory.
17. As per Clause No. 13, Note: (b), In case of Board/corporations/societies/local bodies/autonomous bodies, Purchase
committee with delegated/competent authority for finalization/approval of Bid should not include officials of CSPO/
District level officer of DIC except with prior approval of Industries and Mines Department.
18. The duration for e-tenders shall be for a minimum period of 15 days (except in case of emergency purchases). In case
of procurement through Gem, duration of tenders shall be as per provisions of Gem (currently 10 days).
19. The purchasing entity shall not purchase by splitting the total quantity of annual purchases to be made by them. For
example, if the administrative approval has been received for the purchase of 100 chairs, the actual purchase should
be undertaken in a single bid for 100 chairs instead of buying them in separate bids. Further, if joint approval is
received for more than one item in the administrative approval, it is not necessary to bid jointly for all of them. Item
wise bidding should be done so that more number of bidders can participate in the bid and competitive price can be
obtained. So that more OEM/MSE can participate.

Provisions for Start-Ups:

1. Benefits available to start up in terms exemption from criteria of minimum prior experience and minimum turnover
requirements is subject to eligible entities submitting relevant certificates as mentioned in Clause 10 A of the Gujarat
State Procurement Policy – 2024 and start up having total annual production capacity twice the bid quantity. Procuring
Entity to stipulate suitable condition for ensuring the same. Annual Production Capacity in this case shall be
established by MSME Udhyam Registration and CSPO/NSIC registration. In case of increase in production capacity, it
should be reflected in the CSPO/NSIC registration.
2. EMD Exemption shall be available to only those Startups which are recognized by DPIIT under the Start-up India
Program and has obtained Udhyam registration & CSPO/NSID registration as MSE and they participate directly in
tendering process for the product which they are manufacturing/services which they are providing.
3. Only OEM Start-up unit shall have exempted for EMD as well as exempted from the criteria of minimum prior
experience and minimum turnover requirements. Reseller/Trader of any products shall not be eligible to get benefit as
start-up.
4. Procurement without tender from Start-ups recognized by DPIIT under the Start-up India Program and having
Udyam registration certificate as well as registration with CSPO or National Small Industries Corporation as a MSE is
applicable for eligible items only. It is not applicable for general purchase. The detailed guidelines and the list of goods
and services that may be procured from the eligible Start-ups will be published by the Start-up Cell, Industries
Commissionerate. No procurement without tender to be done except the list published as mentioned above.
5. For Procurement of Reserved items, it shall be procured from Startups recognized by DPIIT under the Startup India
Program and having Udyam registration as well as registration with CSPO or National Small Industries Corporation as
a MSE. Moreover, purchase preference of 20% shall be provided to MSEs situated and registered in Gujarat including
start-ups recognized by DPIIT and funded by State Government.

GEM Portal Related Instructions

1. Only Two Packet Bid to be Floated on GeM.

2. As per GR dated 03-02-2021, Each office to formulate an Internal Committee for finalizing Specification, Terms &
Conditions of Goods and Service to be procured.
3. Procuring entity while floating bid on GeM/e-tender, not to stipulate any conditions in the bid that restrict competition.
4. The procuring entity shall keep relevant terms and conditions for the goods/services in the bid and not limit the
competition by asking for unnecessary conditions, certificates and documents.
5. Regarding Custom Bid: Procuring entities should float Bid on GeM portal in available “Categories”. Whenever
particular item category/service is not available on GeM, procuring entity to make a request to GeM immediately for
Category creation and inform the CSPO office by giving a copy of the communication. Custom bid or custom bunch bid

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should be floated only in case the category is not available despite making a request to GeM. Also, when the
goods/services are available in the Category but the required specifications are not available, custom bid should not
be floated. Instead the bid should be floated under the Category and required parameters and specification should be
mentioned in the Additional Specification/Scope Document to the Additional Terms and Conditions (ATC) to bid of that
category.
6. When buying in large quantities, item-wise separate bids should be floated instead of bunch bids, so that more
OEMs/MSEs can participate.
7. It should be ensured that competition is not limited while choosing bunch bids. Whenever Bunch Bid is floated,
procuring entity should mention reasons for keeping item-wise financial evaluation or total value-wise evaluation of the
bid in the internal committee and record it in the proceedings.
8. In case category is not available and bunch bid is not possible as well as more miscellaneous items are to be
purchased, then BOQ bid shall be undertaken. For BOQ bids, approval of the HoD must be taken.
9. Even while floating Bid as BOQ/Custom Bid, all the provisions of existing Purchase Policy and Purchase Preference
for MSE must be strictly followed.
10. In the BOQ/Custom Bid, clearly indicate the title of the bid according to the goods/services to be procured.
11. While bidding for BOQ/Custom Bid, Procuring Entity to select the relevant category so that the notification is
communicated to the Sellers of that category and take necessary steps for wider publicity of the Bid floated (preferably
Publication in the widely circulating News Paper). Procuring entity to record steps taken and mention the category of
sellers to whom notification for BOQ bids has been sent along with the numbers of sellers to whom notification is sent
in the agenda to be presented to the Purchase Committee.
12. While calculating/mentioning in the bid “Estimated Value” of the items to be procured, procuring entities not to rely
solely on the price uploaded on the GeM Portal. The prevailing market price, last purchase price, etc. shall also be
taken into account.
13. It is imperative to verify the reasonableness of the price received from GeM Direct Purchase/GeM Suggested L-1 by
comparing it with the market price. Financial fairness has to be strictly followed in the procurement process.
14. By including reverse auction (RA) in bids on GeM, more competitive price can be obtained. Additionally, if the price in
the bid is higher than the market price, online negotiation can be undertaken on GeM.
15. As all the process on GeM portal is online, any action related to the bid should be done on GeM Portal itself using the
functionality available on the online portal. When any document is to be obtained during the bid, it is to be requested
on GeM Portal itself. Documents are not to be requested from the bidder through offline mode/e-mail.
16. All purchases/services to be ordered/awarded through the GeM portal must be done online. Procuring entities not to
order/award through offline mode. Bidding process on GeM portal should not be used for “Price Discovery” only.
17. Sample for technical qualification should not be ordered from seller on GeM portal.
18. For procuring through GeM, it is essential to go through the training videos, FAQs, GTC, etc. on GeM portal.

Guidelines regarding Purchase Committees:

1. Purchase Committees as mentioned in Clause 13 of Gujarat State Procurement Policy 2024 pertains to Government
Department and HoDs only. All other Government Institutions to form their respective committee/apex committees with
delegation of Power for approval of Purchases.
2. Agenda of the Meeting of respective committee should be timely circulated to all the members (minimum 7 working
days in advance).
3. Circular meetings should be avoided. However, in case of exigencies, it should be convened only with the written
permission of the Committee Chairman.
4. Financial powers ( per item ) of DPC/DPCAD for Normal Purchase as mention in clause 13(b) is to be read as Rs.
25,001 to Rs. 2 Crore .

Additional Industries Commissioner (S.P.)

To,

All Departments of Govt. of Gujarat

Signature Not Verified

Signed by:Dr.Prashant Jilova
Additional Industry Commisioner File No: IC/WRT/e-file/172/2024/0587/CSPO
Date:2024.09.10
18:16:34 +5:30 Approved By: Additional Industry Commisioner,AIC(SP) office,IC

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