Upto 15% price preference shall be available to the SSI units, in all Government purchases except in case of items brought on the negative list. The price preference shall also apply in case of any goods purchased by the public sector undertakings/boards purchased for their own commercial use. The price preference shall not cover items purchased by the public sector undertakings and boards who may use such goods as raw material, consumables, packing of their products which are, in turn, meant to be sold on commercial basis either to the Government departments or to the private consumers or in the open market.
Nothing contained in the preceding para shall mean to restrain the Government from purchasing or allowing any of its departments, boards, corporations to purchase any consumption/commercial goods from another manufacturing organisation of the Government such as JKI, JKML, SIDCO, Agro Industries Corporation, J&K Handloom Development Corporation, KVIB etc. whether without inviting tenders or after inviting tenders.
In all other cases where the price preference applies, the following procedure shall be followed, in suppression of any other Government or departmental instructions, if issued to the contrary, to regulate the purchases of the Government departments:-
Every purchase committee of the Government departments shall include a member from the Directorate of Industries and Commerce, not below the rank of a General Manager. Any Committee constituted without any such representative of DIC shall be void ab initio.
If the goods offered by a registered SSI unit carry quality mark, for example of BIS, FPO etc, or if the goods otherwise are of standard quality, and if the rate quoted by the SSI unit is within 15% of the lowest rate quoted by any other tenderer not being another local registered SSI unit, the Purchase Committee shall decide to place order on such local registered SSI unit, if the local SSI unit has the requisite registered capacity to meet the tendered requirement.
If the rate quoted by the local registered SSI unit is not within 15%, the Committee shall negotiate the rate with the local registered SSI units and place order on such negotiated rate.
No tender form a local registered SSI unit shall be rejected in contravention of the aforementioned instructions. In case, the purchase committee faces any difficulty in carrying out these instructions, it will refer the matter to the Industries & Commerce Department in the Secretariat and their decision in the matter shall be final and binding on the purchase committee/department.
If a local registered SSI unit is on rate contract with the DG S&D, DG QA, NSIC, etc. for a particular item needed by a Government department, it shall purchase the item from such SSI unit without inviting tenders.
It would be lawful for any local registered SSI unit to quote through SICOP/SIDCO or to seek supply order through SICOP/SIDCO, or to request/authorise SICOP/SIDCO to represent its case before the purchasing department. In all such cases, SICOP/SIDCO shall be treated at par with the SSI unit or units whose case it may be representing, for all matters connected with the finalisation of the contract, delivery of supplies and the price-preference.
No purchasing department shall force or cause any local registered SSI unit to get more quality tests conducted at its own cost if such unit is registered with the BIS, DG S&D, DG QA etc. for ISI/ISO 9000/FPO mark.
No purchasing department shall tender for purchase of any item with a branded/patented name of any manufacturer or supplier.
If the department supplies raw material to a local registered SSI unit, directly or through SICOP, such as Steel Billets, Wire-rods, for conversion into the end product required, such as structural steel, crate-wire etc., the conversion rate may be worked out by the concerned administrative department (such as PWD) and a rate contract be sanctioned for conversion only after taking into account the component of price-preference.
For any item where the market price for the goods manufactured by mill are controlled by statutory orders, which are applicable to the SSI units, the price preference may be negotiated on the basis of such statutory rates.