NEW DELHI: To save MSMEs from pandemic-hit economy fall, the central government has removed the profit criterion of its public procurement policy.
The official said that small and medium firms will be saved from disqualification.
"Thus, the profit criterion for pre-qualification in government tenders has been discontinued," said the officials.
The eligibility of a firm will be judged on the basis of its net worth, now because earlier it was necessary to fulfil both profit and net worth criteria to become an eligible bidder for government contracts.
The net worth of a company is the total value of its assets minus debts and profit is when they get more than what was invested.