According to Business Standard, the policy was finalised after the government received suggestions from industrial promotional bodies like the Confederation of Indian Industry (CII) and Industries Association of Uttarakhand (IAU).
Under the new policy, the government will give purchase preference to all the state-based local MSEs in case their tenders are within the range of 20 percent of the L1 (lowestquotation).
The measure would benefit the state's khadi andvillage industry, particularly in the handicraft and handloom sectors.
"This is a big decision, the suggestion for which we gave to the government," said Pankaj Gupta, president of the Industries Association of Uttarakhand.
Another big suggestion which came from IAU was that the even in the various government turnkey projects, it will be mandatory for the company to purchase 30 percent of the material from local MSEs.
While making procurement from the local enterprises, the government will not seek information regarding the company's annual turnover. For this purpose, all the MSEs in the state will have to register with the National Small Industrial Corporation (NSIC) and get a certificate of quality from it.