Jaipur: Rajasthan’s new public procurement policy, aimed at boosting local manufacturing, has sparked concern among industry bodies, which warned that excluding medium enterprises from purchase preference benefits could cost the state jobs, investment and tax revenue.The policy, notified by the Finance Department on June 12, grants procurement preference to Rajasthan-based micro and small enterprises (MSEs) but excludes medium enterprises.Industry representatives have urged the govt to amend the notification to allow medium enterprises to qualify for preference in sectors where no Rajasthan-based MSE manufacturer exists.They argued that medium enterprises were covered under the previous procurement framework and continue to be recognised under the Central MSME Act.
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By excluding them, the policy overlooks a significant segment of Rajasthan’s manufacturing base.Under the new framework, Rajasthan-based MSEs receive 100% purchase preference when they emerge as the lowest bidder, while substantial procurement quotas have also been earmarked for them under various bidding conditions.Industry estimates suggest Rajasthan’s power sector undertakings, including the discoms and Rajasthan Rajya Vidyut Prasaran Nigam Ltd (RVPN), procure goods worth Rs 25,000-30,000 crore annually. However, only around 5% of these purchases are currently sourced from manufacturers within the state.Similarly, Rajasthan Medical Services Corporation Ltd (RMSCL) procures goods worth nearly Rs 2,000 crore every year, but Rajasthan-based manufacturers account for only about Rs 200 crore of this business. Procurement by PHED, medical colleges and other govt departments, industry representatives say, presents substantial untapped opportunities for local manufacturers.Manufacturers contend that the policy creates a gap in cases where no Rajasthan-based MSE produces a required product. In such cases, if a Class-I local supplier from outside Rajasthan emerges as the lowest bidder, 20% of the order remains with that bidder while the remaining 80% is reserved for Rajasthan MSEs.However, when no eligible Rajasthan MSE exists, the order effectively goes to the out-of-state supplier, leaving Rajasthan-based medium enterprises without access to procurement opportunities despite having manufacturing capacity.Industry bodies have urged the govt to amend the policy to extend purchase preference to Rajasthan-based medium enterprises in categories where no eligible MSE manufacturer is available. They argue that such a move would strengthen local industry, generate employment, encourage fresh investment and help retain procurement spending within the state.