Patna: The Bihar government has directed all urban local bodies and institutions under the Urban Development and Housing Department to implement the Bihar Purchase Preference Policy-2024 with immediate effect, a move aimed at increasing the participation of local industries in government procurement.
According to the Urban Development and Housing Department, the policy will apply to the procurement of both goods and services, requiring all eligible tenders to incorporate the purchase preference provisions notified by the state government.
What the New Directive Means
Urban Development and Housing Minister Nitish Mishra said all municipal bodies and departmental institutions have been instructed to follow the provisions of the Bihar Purchase Preference Policy-2024 in every procurement process.
According to the department, the policy is intended to ensure that eligible local enterprises receive the prescribed purchase preference during government procurement, provided they meet the conditions laid down under the policy.
For the procurement of goods, the department said preference will be available only to enterprises registered in Bihar with manufacturing units located within the state.
Preference for Local Industries and MSMEs
Officials said the policy seeks to strengthen the position of Bihar-based industries by providing them with a competitive advantage in government contracts.
According to the department, the policy provides a purchase preference margin of up to 15 per cent for eligible local enterprises participating in government procurement of goods and services.
The government also said the initiative is intended to encourage entrepreneurship, strengthen Micro, Small and Medium Enterprises (MSMEs) and increase the participation of local businesses in public procurement.
Concessions for Eligible Enterprises
The policy includes several concessions for enterprises falling under specified categories.
According to the department, these include free tender documents, exemption from bid security, and conditional relaxation of up to 50 per cent in eligibility criteria relating to annual turnover, company age and prior experience.
The policy also provides special procurement provisions for eligible start-ups through nomination or limited tendering in specified cases.
Department Calls for Uniform Implementation
The Urban Development and Housing Department has instructed all urban local bodies and subordinate institutions to study the provisions of the Bihar Purchase Preference Policy-2024 and ensure they are implemented effectively.
According to the department, the objective is to ensure that eligible local enterprises receive the benefits of the prescribed purchase preference in a transparent and timely manner during the procurement of goods and services.
What’s Next?
The directive takes effect immediately, and urban local bodies are expected to incorporate the policy into future tenders and procurement processes. The department is expected to monitor compliance as the policy is rolled out across municipal institutions in Bihar.
