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Maharashtra government approves 'transparent' procurement policy

There will be a 50% quota for suppliers from the state; suppliers from other states will not get to service over 50% orders

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File photo of Congress workers protesting against the chikki scam outside Pankaja Munde’s residence at Worli
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In a major change in the way purchases are made by the state government, the cabinet has approved a new procurement policy, which has given priority to local industries.

Accordingly, industries and suppliers in state will get orders for at least 50% of purchases. The policy has also brought in new methods of procurement like Swiss challenge and electronic reverse auction.

This first such change in the procurement mechanism by the state after 23 years, for its offices, undertakings and bodies, has almost brought the curtains down on the controversial rate contract system. The policy comes amid allegations of irregularities against ministers.

Women and child development minister Pankaja Munde had found herself being embroiled in an unseemly controversy after she was accused of irregularities in purchase of items worth Rs206 crore, including chikki. The education department headed by Vinod Tawde was also charged with irregularities in the purchase of fire extinguishers for schools.

“There will be a 50% quota for suppliers from Maharashtra. Those from other states will not get to service over 50% orders,” said industries minister Subhash Desai, adding, “Earlier, there had been complaints about parties from outside Maharashtra walking away with bulk of orders.”

“Earlier, the lowest bidder (L1) would walk away with the contract. Now, the lowest bidder, in case he is from outside the state, will get to supply 50%, while an eligible bidder from state will get to supply the remaining 50%, but he will have to match the rate or at least give a strong reason for failing to do so,” added Desai.

Desai said purchases of over Rs3 lakh will have to be made via e-tendering. A total of 241 items will be reserved for purchases through tendering from small and medium enterprises. Of this, 20% purchases will have to be made from enterprises owned by scheduled caste and tribal entrepreneurs.

“Earlier, the rate contract and tendering systems were in operation, but some departments chose to purchase only through rate contracts,” said Desai. However, exceptions have been made for departments like health (purchases of medicines during emergencies) and home (sensitive equipment) after permission from the high power committee sans tendering.

An e-portal will be developed by the state within three months for making purchases. The rights to make purchases have been decentralised to do away with arbitrary decisions. The district collectors, zilla parishad CEOs and other officials will bring problems in the implementation of the policy to the notice of the industries department within three months.

Finance minister Sudhir Mungantiwar said they would put up a draft of the policy online to get suggestions from the people and sharpen it further. “(The purpose is) to ensure that only necessary purchases happen, and not unnecessary ones,” he noted.

To avoid situations where departments would make last minute unwanted purchase to finish their budgetary allocations, no purchases would be allowed after February 15 and the finance department will not accept files after March 15.

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