CIMEI To Meet Commerce Ministry Officials Over Karnataka Procurement Clauses

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  • The Cooperation Department of Karnataka issued a tender for the procurement of 5491 units of desktop computers. 
  • The tender stated that bid splitting, MSE (Micro and Small Enterprises) purchase preference, and Make-in-India categorisation are not applicable.

Contending issues, especially the exclusion of MSMEs and startups in a recent procurement order by the Karnataka state government, the Confederation of Indian MSMEs in ESDM and IT (CIMEI) is set to approach the Ministry of Commerce and the director of the Department for Promotion of Industry and Internal Trade.

The Cooperation Department of Karnataka issued a tender for the procurement of 5491 units of desktop computers on June 9, last month. The tender stated that bid splitting, MSE (Micro and Small Enterprises) purchase preference and Make-in-India categorisation are not applicable. The bid categorically mentions that no exemption for years of experience and turnover for startups and MSMEs would be provided.

“The tender document’s clauses imply no preference is given to MSMEs or startups. The clauses state that bidders must have a turnover of ₹100 crore for the previous year, with an average of ₹300 crore turnover for the past three years,” CIMEI director general Jairaj Srinivas told EFY.

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“Additionally, the document specifies an EMD (Earnest Money Deposit) of ₹39 lakh. These conditions effectively exclude MSMEs from participating, as it is unlikely for any MSME to have achieved a turnover of ₹50 crores on average,” he added.

The tender stated that the bidder must meet the eligibility criteria, including a minimum average annual turnover of ₹10,000 lakhs for the past three years and three years of experience in supplying similar goods or services. As per the tender, the bidder has to submit several documents, including experience criteria, past performance, turnover certificate, OEM authorisation certificate, and compliance with the bill of quantities (BoQ) specification and supporting documents.

Srinivas said efforts were being made to arrange a meeting with government officials to address this issue. “The request is being made through the standing committee member of IT and Telecom to meet the Ministry of Electronics and Information Technology Secretary and other key officials from the Ministry of Commerce and Industry, including the chief executive officer (CEO), Government e-Marketplace (GeM), and Department for Promotion of Industry and Internal Trade (DPIIT) director. The meeting is expected to occur before the seventeenth of this month,” he added.

Srinivas did not divulge further details but added that “such violations are widespread among state governments, government subsidiaries, PSU SAS, and the central government, which do not adequately support MSMEs.”


 

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Yashasvini Razdan
Yashasvini Razdan
Yashasvini Razdan is a journalist at EFY. She has the rare ability to write both on tech and business aspects of electronics, thanks to an insatiable thirst to know all about technology. Driven by curiosity, she collects hard facts and wields the power of her pen to simplify and disseminate information.

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