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India : STATE depts., PSUs caught on wrong foot for not following procurement guidelines

Publish Date : 17-Mar-2015

Indian state departments and PSUs been caught on the wrong foot for not following the guidelines on purchase of goods from local micro and small enterprises (MSEs). In spite of the guidelines outlined clearly in the MSME Development Policy, 2009, the chief secretary has been irked by their non-compliance by the relevant departments.

In a letter to secretaries of all departments, state chief secretary G C Pati said : "It has come to my notice that some of the departments and PSUs are not following the instructions (on procurement from MSEs) strictly. You are requested to reiterate these instructions to all concerned for necessary action in accordance with the government's MSME Development Policy and also to facilitate inspection of tenders and related papers relating to major purchases during last 1-2 years by director, export promotion & marketing."

The MSMBs (micro, small & medium businesses) department and director, export promotion & marketing are responsible for reporting specific cases of non-compliance to take proper and necessary action for breach of instructions.

The chief secretary has asked to take disciplinary steps against officers responsible for such breaches. Chairman and managing director, Odisha Industrial infrastructure Development Corporation (Idco), Vishal Dev, said, "Procurement from local MSEs is not happening to the desired level because of quality issues. The local units need to scale up on quality of goods to fit the requirement of the large sector industries."

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