Jaipur, June 19 -- Rajasthan-based micro, small and medium enterprises (MSMEs) will now have a significant advantage in securing government contracts, with the state government introducing a new procurement policy that allows local firms to get up to 80% of an order even if they are not the lowest bidders. The move, aimed at strengthening local manufacturing, encouraging investment and creating employment opportunities, is part of the state's effort to align public spending with the objectives of the Centre's Make in India initiative. The Finance Department has issued detailed guidelines under the state's public procurement framework following the announcement made in the 2026-27 Budget. The new rules introduce a purchase preference mechanism to ensure that a larger share of government procurement reaches Rajasthan-based manufacturers while maintaining transparency and competitive bidding. The biggest beneficiary of the policy will be Rajasthan MSMEs participating in government tenders. Under the new arrangement, a local MSME emerging as the lowest bidder (L-1) will receive the entire procurement order. However, even when a supplier from outside Rajasthan quotes the lowest price, local MSMEs will still get an opportunity to secure a major portion of the contract by matching the L-1 rate. According to the guidelines, if the L-1 bidder is a Class-I local supplier from outside Rajasthan, only 20% of the order will remain with the original bidder. The remaining 80% can be offered to eligible Rajasthan MSMEs that agree to supply at the same price quoted by the L-1 bidder. In another scenario, if a non-MSME company based in Rajasthan becomes the lowest bidder, half of the order will continue with that company, while the remaining 50% can be allocated to Rajasthan MSMEs willing to match the L-1 price. The government believes the provision will help smaller local industries compete with large companies and ensure that government procurement generates greater economic benefits within the state. To ensure that the policy benefits genuine manufacturers, the government has specified strict conditions for determining local suppliers. Companies seeking preference under the policy must have a minimum of 50% local content in their products. The guidelines clarify that activities such as repackaging, refurbishing, rebranding or merely reselling imported goods will not be considered local manufacturing. The value of local content will be calculated on the basis of value addition carried out in India and not on the ownership or nationality of the company. As a result, even foreign-owned companies can qualify as local suppliers if they meet the prescribed domestic value-addition criteria. The government has introduced a verification mechanism to ensure compliance with local content requirements. Suppliers will have to submit self-declarations regarding the percentage of local content in their products. For contracts exceeding Rs.10 crore, certification from a statutory auditor, cost accountant or chartered accountant will be mandatory. Any false declaration could invite action under procurement transparency laws, including disqualification and debarment from government tenders for up to two years. The guidelines also direct government departments to avoid tender conditions that unnecessarily restrict participation of local manufacturers. The government has also discouraged mandatory requirements for foreign certifications, brands or technical specifications in cases where equivalent Indian standards are available....