GISO officials say the institution has made a decision to go retail and commercialize laboratory facilities to increase revenue, which has been falling since 2005
Having good stationery is something that we would all like but not at the cost of over Rs 20 crore. But that's exactly what the people of India are paying. A 150-year-old department, the Government of India Stationery Office (GISO) which comes under the Ministry of Urban Development, is costing the national exchequer over Rs 20 crore to run, while generating just Rs 3 crore in revenue.
Top officials in the Urban Development Ministry confirm this to be the case. "For supply of Rs 3 crore of stationery we are spending Rs 22 crore on establishment," explains a top officer in the ministry. The official adds the ministry has already asked GISO to explain their relevance in today's 'Digital India' scenario.
Earlier this week, ministry officials say they have already asked GISO to put up a presentation on its financial requirements to which GISO has responded. GISO officials say the institution has made a decision to go retail and commercialize laboratory facilities to increase revenue, which has been falling since 2005.
GISO officials also point out that they have already made drastic cuts to the Kolkata-headquartered department, whose primary focus was to provide stationery. And that can be seen in its staff. Sources in the Urban Development ministry stated that staff in GISO was first reduced from 1,214 to 622 in 2010 and now it has further reduced from 622 to 399 across the country. They also feel that with a careful modernisation plan, the organisation can remain relevant and profitable in today's age.
Asked about the plan, Controller of Stationery Subir Kumar Mandal said, "We are digitalizing the process of demand and supply and this will help us to do more services and supply more stationeries."
He added, "A parliamentary committee has prepared a report that has stated that the unit should not be closed due to the larger good of the country as around 25 small scale industries are attached to the GISO. We are not just doing business but providing a service.
Whatever the case may be; the pressure is on the Kolkata-headquartered organisation — which has offices in Delhi, Mumbai and Chennai — to turn things around. Due to an amendment in General Financial Rules (GFR) – a compendium of general provisions which has to be followed by all the government offices dealing with financial matters — in 2005, the GISO began to lose its relevance.
Urban Development Ministry sources confirmed that rule 140 GFR which empowered Ministries and Departments to procure goods on their own; led to reduction in supply of stationary, staff and budgetary allocation to the department.
A DNA investigation shows how steep the fall in revenue has been. As per documents accessed by DNA, before the GFR amendment in 2005, the GISO was running in losses, but not to such a large extent. In 2000-2001, the actual expenses incurred on the establishment was Rs 7.87 crore and procured stationary worth Rs 7.06 crore but actually supplied stationary worth Rs 5.60 core.
But in 2005-06 the expenses on the organization was Rs. 9.28 crore and it had procured stationary worth Rs.1.88 crore. The earnings from this supply was a meagre Rs.1.63 crore.
This gap between expenditure and profit has only increased. In 2015-2016, the expenses on GISO increased to Rs 21.19 crore and the amount spent on procuring stationary was Rs 6.68 crore while the revenue reached was just Rs 5.98 core.
This situation got worse in 2016-17. After the recommendations of the Seventh Pay commission, ministry sources say that expenses on running GISO has almost doubled in this year while they estimate the revenue amount to remain roughly the same as 2015-16.
GISO officials say that the department remain relevant today and that they can do big business if given the chance. As a senior officer in GISO said, "The market for our services is big as every government bodies, including defence establishments, need to procure stationary from us." He added, "Overall, we can do business of Rs 206 crore but due to lack of budget allocation by the government we are unable to do so."
Sources in the ministry stated that they would take a final call after a proper analysis of the unit. Whatever the case may be, the organization, which had witnessed many battles, going back to the 1850 Mutiny, is fighting its own battle now. The battle to survive and to not become part of the dusty files in government offices, now rest in the GISO and the ministry's hands.
TIMELINE OF GISO
1987: Cabinet decided to wind up GISO
1991: Cabinet revoked the decision
1997: Department of Administrative Reforms & Public Grievances study suggested conversion of GISO into an autonomous body
1970-2010: Studies conducted regarding GISO's relevance. It was decided to continue GISO's operations with reduced staff strength from 1214 to 622.
2017: Urban Development Ministry asked GISO to come up with a plan to make itself profitable
FALLING STAFF NUMBERS IN GISO
2010: Staff cut from 1,214 to 622
2016: Staff cut from 622 to 399
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This situation got worse in 2016-17. After the recommendations of the Seventh Pay commission, ministry sources say that expenses on running GISO has almost doubled in this year while they estimate the revenue amount to remain roughly the same as 2015-16.
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