PPIMSES

Preferential Purchase Incentives for Micro and Small Enterprises Scheme

5.5/10

"Preferential Purchase Incentives for Micro and Small Enterprises Scheme" aims to encourage and boost the Micro and Small Scale Enterprise Sector. Benefits such as price matching, reduced tender document costs, and priority in payments are provided to Micro and Small Enterprises.

State In Kind

States / UT: Goa

Nodal department: Commercial Taxes Department

Scheme for: Infra

Scheme profile

DBT (direct benefit transfer): No

Categories: Business & Entrepreneurship

Sub-categories: Setting up / start-up / entrepreneurship, Taxes

Target beneficiaries: Business Entity

Tags: Tax, Incentive, Purchase, Business, Entrepreneur, MSME, Industry, Commerce

Details

Launched in 2008, the scheme "Preferential Purchase Incentives for Micro and Small Enterprises Scheme" by the Directorate of Industry, Trade & Commerce, Government of Goa aims to encourage and boost the Micro and Small Scale Enterprise Sector by providing preferential treatment in government tenders and purchases. This scheme provides benefits such as price matching, reduced tender document costs, and priority in payments to Micro and Small Enterprises permanently registered with the Directorate of Industry, Trade & Commerce. The scheme is implemented by various Government Departments, Autonomous Bodies, Corporations, and Semi-Government Departments in Goa. The objectives of the scheme include ensuring compliance with quality standards, providing financial incentives, and promoting the growth of Micro and Small Enterprises.

Benefits

  • 1. Micro and Small Enterprises shall be allowed to match the lowest tender price floated by non-Small Scale Units provided its quoted price is within 15% of the lowest quoted price floated by Non-Micro and Small Enterprises. 1. In case of more than one Micro or Small Enterprises falling within the range the lowest one shall be preferred. 1. 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 Micro or Small Enterprises for being qualified to match the lowest one. 1. For the purpose of availing benefits under this Scheme the Micro and Small Enterprises shall be required to match the standard of quality as required by the State Government Department. 1. The Scheme shall be applicable even for the purchase of computer hardware and other electronic items except in cases of purchases of the Education Department. 1. The tender documents shall be supplied to Micro and Small Enterprises at the rate of a maximum of ₹200. 1. Earnest money shall be required to be deposited and the same shall be a maximum of ₹500. 1. No other security deposit is required. 1. Priority in payment shall be ensured to Micro and Small Enterprises and the payment shall be effected by the concerned Department within 60 days from the delivery of goods or completion of tendered work failing which the Department shall be liable to pay an interest at the rate of 0.75% per month
  1. Micro and Small Enterprises shall be allowed to match the lowest tender price floated by non-Small Scale Units provided its quoted price is within 15% of the lowest quoted price floated by Non-Micro and Small Enterprises.
  2. In case of more than one Micro or Small Enterprises falling within the range, the lowest one shall be preferred.
  3. 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 Micro or Small Enterprises for being qualified to match the lowest one.
  4. For the purpose of availing benefits under this Scheme, the Micro and Small Enterprises shall be required to match the standard of quality as required by the State Government Department.
  5. The Scheme shall be applicable even for the purchase of computer hardware and other electronic items except in cases of purchases of the Education Department.
  6. The tender documents shall be supplied to Micro and Small Enterprises at the rate of a maximum of ₹200.
  7. Earnest money shall be required to be deposited and the same shall be a maximum of ₹500.
  8. No other security deposit is required.
  9. Priority in payment shall be ensured to Micro and Small Enterprises, and the payment shall be effected by the concerned Department within 60 days from the delivery of goods or completion of tendered work, failing which the Department shall be liable to pay an interest at the rate of 0.75% per month.

Eligibility

  • The scheme applies to Micro and Small Scale Enterprises.
  • The enterprise should have a turnover not exceeding ₹6,00,00,000/- per annum for the preceding 3 financial years.
  • The enterprise should be permanently registered or acknowledged with Entrepreneurs Memorandum II by the Directorate of Industries, Trade and Commerce.

How useful is this scheme?

Public benefit analysis

A practical look at this scheme for citizens

AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.

5.5
/ 10
Public Benefit Score
Accessibility 7.0/10 Good
Rural usefulness 6.0/10 Moderate
Application complexity 5.0/10 Moderate
Financial impact 4.0/10 Moderate
Literacy barrier 2.0/10 Good
Women inclusivity 5.0/10 Moderate
Awareness 4.5/10 Moderate
Implementation reliability 7.0/10 Good
Bigger shape means a better fit for citizens
  • Accessibility7.0
  • Financial impact4.0
  • Rural utility6.0
  • Awareness4.5
  • Simplicity5.0
  • Inclusivity5.0

What problem does this scheme solve?

The scheme provides significant support to micro and small enterprises in Goa, facilitating their participation in government tenders.

Key challenges addressed

  • Encourages micro and small enterprises to compete for government contracts
  • Reduces financial barriers for tender participation

Most beneficial for

  • Micro and Small Enterprises
  • Entrepreneurs in Goa

Likely challenges

  • Limited awareness among potential beneficiaries
  • Complexity in meeting quality standards

Practical insights for citizens

The scheme is practical but requires better outreach and support for potential beneficiaries.

Rural challenges

  • Limited access to information about the scheme
  • Geographical barriers to government offices

Digital challenges

  • Low digital literacy among potential beneficiaries
  • Limited online resources for application

Implementation bottlenecks

  • Potential delays in payment processing
  • Compliance with quality standards may be challenging

Awareness challenges

  • Low awareness among micro and small enterprises about the scheme

Application analysis

Application mode
Offline office
Documents burden
Low, requires minimal documentation
Verification complexity
Moderate, dependent on quality standards
Office dependency
High, requires interaction with government offices
CSC support
Limited
Estimated citizen effort
Moderate, requires understanding of tender processes

Estimated beneficiary reach

  • Rural / urban reach Moderate
  • Gender reach Moderate
  • Target income group Low to middle income
  • Occupation reach Business entities

Benefit analysis

Benefit type
In Kind
Benefit frequency
As per tender participation
Benefit practicality
High, as it directly supports business operations
Financial meaningfulness
Moderate, as the benefits can significantly reduce costs
Long-term impact
Positive, as it encourages growth in the micro and small enterprise sector

Plain-language guidance

This scheme helps small businesses in Goa get government contracts by allowing them to match lower prices from larger companies. It also reduces costs for participating in tenders.

Who should apply
Micro and small enterprises looking to participate in government tenders.
Who may struggle
Businesses unfamiliar with tender processes or lacking quality compliance.
Best application route
Apply via local government offices with necessary documentation.

This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.

Application Process

Offline

Step 1: Tender Participation
Participate in tenders floated by Government Departments, Autonomous Bodies, Corporations, or Semi-Government Departments. Submit the required tender documents, which can be obtained at a maximum cost of ₹200/-.
Step 2: Earnest Money Deposit & Compliance with Quality Standards
Deposit the earnest money, which shall not exceed ₹500, as required by the tender process. Ensure that your enterprise meets the standard of quality as required by the State Government Department.
Step 5: Match the Lowest Tender Price
If your quoted price is within 15% of the lowest quoted price by Non-Micro and Small Enterprises, you may be allowed to match the lowest tender price. In the case of contractual tenders, avail the pro-rata percentage over and above the lowest quotation to qualify for matching the lowest price.

*Ensure that your enterprise receives priority in payment, which should be effected within 60 days from the delivery of goods or completion of tendered work. If payment is delayed, the concerned Department shall be liable to pay an interest at the rate of 0.75% per month.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

As a micro-enterprise owner looking to participate in government tenders, what special price matching benefit is available when competing against larger companies?

If your quoted price falls within 15% of the lowest price quoted by non-micro/small enterprises, you can match their price to win the tender. In cases where multiple micro or small enterprises fall within this range, the one with the lowest quote gets preference.

How much financial turnover should my enterprise maintain to be eligible for preferential purchase benefits from the Goa government?

Your enterprise must have an annual turnover not exceeding Rs. 6 crores for the last three consecutive financial years to qualify for these benefits. This limit applies to both micro and small enterprises.

What documentation is required to prove my eligibility for receiving preferential treatment in government tenders in Goa?

You must have permanent registration or acknowledgement with Entrepreneurs Memorandum II from the Directorate of Industries, Trade and Commerce, Goa. This is a mandatory requirement to access any benefits under the scheme.

How much would I need to pay as earnest money when participating in government tenders as a micro or small enterprise?

The maximum earnest money deposit required is Rs. 500, which is significantly lower than what might be required from larger enterprises. Additionally, no other security deposit is required.

What is the maximum cost I would need to pay to obtain tender documents as a micro or small enterprise?

The tender documents will be provided to you at a maximum cost of Rs. 200, which is a special concession for micro and small enterprises participating in government tenders.

Within what timeframe can I expect payment from government departments after delivering goods or completing tendered work?

The department must make payment within 60 days from the delivery of goods or completion of work. If they fail to do so, they are liable to pay interest at 0.75% per month.

If I am bidding for contracts involving installation and commissioning of machinery, what special consideration is given to my quoted price?

A pro-rata percentage adjustment above the lowest quotation will be granted to your enterprise to qualify for matching the lowest bid, provided you meet other eligibility criteria.

As a micro-enterprise selling computer hardware and electronic items, can I avail of the preferential purchase benefits for government tenders?

Yes, you can avail these benefits for computer hardware and electronic items tenders, except for purchases specifically made by the Education Department.

What quality standards must my enterprise maintain to be eligible for the preferential purchase benefits?

Your enterprise must match the quality standards as required by the State Government Department. This is a non-negotiable condition for availing any benefits under the scheme.

What types of government entities are required to provide these preferential purchase benefits to eligible enterprises?

These benefits must be provided by all Government Departments, Autonomous Bodies, Corporations, and Semi-Government Departments when floating tenders or making purchases.

References

Guidelines
https://ditc.goa.gov.in/sites/default/files/Preferential-Purchase-Incentives-for-Micro-and-Small-Enterprises.pdf

Apply

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Frequently asked questions

What is the purpose of Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Preferential Purchase Incentives for Micro and Small Enterprises Scheme is a government welfare initiative designed to support Infra, Business Entity through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Eligibility for Preferential Purchase Incentives for Micro and Small Enterprises Scheme may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Benefits under Preferential Purchase Incentives for Micro and Small Enterprises Scheme may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Preferential Purchase Incentives for Micro and Small Enterprises Scheme is managed by Commercial Taxes Department and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Yes, eligible applicants may be able to apply online for Preferential Purchase Incentives for Micro and Small Enterprises Scheme through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Applications for Preferential Purchase Incentives for Micro and Small Enterprises Scheme may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is Preferential Purchase Incentives for Micro and Small Enterprises Scheme available in all states?
No, Preferential Purchase Incentives for Micro and Small Enterprises Scheme is primarily available for eligible residents of Goa and may be implemented through state government departments and local administrative offices.
Can residents outside Goa apply for Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Eligibility for Preferential Purchase Incentives for Micro and Small Enterprises Scheme is generally limited to residents of Goa unless otherwise specified in the official scheme guidelines.
Does Preferential Purchase Incentives for Micro and Small Enterprises Scheme provide business loan or startup assistance?
Preferential Purchase Incentives for Micro and Small Enterprises Scheme may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
Is collateral required under Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
Can CSC centres help users apply for Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Can beneficiaries track application status for Preferential Purchase Incentives for Micro and Small Enterprises Scheme?
Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Preferential Purchase Incentives for Micro and Small Enterprises Scheme in Goa?
Users in Goa may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Preferential Purchase Incentives for Micro and Small Enterprises Scheme applications?
Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.