MARKETING SUPPORT TO SSIs IN GOVERNMENT PROCUREMENT :

The State Government will ensure that requirements of store items of Government Departments and agencies under its control are procured from industries located within the State. Such local units will get price preference for this purpose. Simultaneously efforts shall be made to ensure that local products are cost-effective and meet overall quality requirements for competitiveness.

Explanation-I: State Government Departments and Agencies under the control of State Government means; Departments under the Orissa Government Rules of Business, Heads of Department and offices subordinate to them, Boards, Corporations Development authorities and Improvement Trusts, Municipalities, Notified Area Councils, Co-operative Bodies and Institutions aided by the State Government and also includes Companies where Government share is 50% or more.

Explanation-II: In order to give effect to the provisions of this paragraph the Orissa General Financial Rules (APPENDIX-6, Rule 96) shall be suitably amended and the Finance Department will issue detailed guidelines.

PURCHASE FROM EXCLUSIVE LIST :

24.1 A list of store items reserved for exclusive purchase from industries located in the State would be prepared from time to time keeping in view the production capacity of the local industries and requirements of State Government Departments and Agencies under its control.

24.2 The State Government Departments and Agencies will have to purchase their requirements of these items only from local industries with ISO / ISI / EPM certification for the items, by inviting competitive quotations from such industries. Efforts will be made to distribute the purchase order equitably among the participating industries, prepared to accept the lowest negotiated rate keeping in view their production capacity.

24.3 Local small-scale industrial units and khadi & village industrial units including handlooms and handicrafts will enjoy a price preference of 5% over local medium or large industries.

Any local small scale industrial unit having ISO or ISI Certification for its products will get an additional price preference of 3% or 2% respectively.

RATE CONTRACT :

24.4 Rate contract in respect of specific store items not in the exclusive list and manufactured by the local small scale industrial units will be finalized by the Director of Export Promotion & Marketing. This will be done on the basis of competitive offers received from local units, cost structure obtained from these offers, market price of similar items and other consideration relevant to fixing the price of the product. Besides, in respect of bulk items a representative of the purchasing Department would be actively associated at the time of rate contract finalization.

Provided further that the State Government may review this policy from time to time and delete items included in the rate contact list and put it in the ‘Exclusive list’ in the interest of encouraging competition.

24.5 State Government Departments and Agencies under the control of the State Government will purchase rate contract items from the rate contract holder/small scale industry at the price fixed, without inviting tenders.

PURCHASE ON OPEN TENDER :

24.6 Items other than those in the "Exclusive Purchase List" or on "Rate Contract" may be purchased by the State Government Department and Agencies under the control of State Government through open tender. Local small scale industrial units and khadi & village Industrial units (including handloom & handicrafts) competing in the open tender will be entitled to price preference as in paragraph 24.3.

24.7 The notice inviting tenders shall stipulate a condition that the participant to the tender must be registered under Orissa Sales Tax Act, 1947. While preparing comparative charts for the prices quoted in the tender papers, the sales tax payable in Orissa should not be added to the basic price since the sales tax realized accrues as revenue to Government. However any tax payable outside Orissa shall be added to the basic price.

24.8 Local small scale industrial units registered with the Directorate of Industries/DICs, Directorate of Export Promotion & Marketing, Khadi, Village, & Cottage Industries, Directorate of Handicrafts, OSIC and NSIC will be exempted from payment of earnest money and pay 25% of the prescribed security deposit while tendering to State Government Departments and Agencies under its control.

24.9 Small-scale industrial units registered with the Directorate of Industries/DICs, Directorate of Export Promotion and Marketing will be entitled to get tender papers free of cost for registered items from State Government Departments and Agencies under its control. Khadi, Village, Cottage & Handicrafts industries, OSIC and NSIC will similarly be eligible to get tender papers free of cost for products marketed by them.

24.10 Payment of dues of Small Scale Units and Khadi and Village Industries: -

State Government Departments and Agencies under the control of the State Government will make prompt payment of dues of local small scale industrial units and Khadi & Village industries in respect of goods purchased from them either directly or through OSIC/ NSIC.

Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993, provides due protection to small scale industrial units for realization of their dues.

24.11 Directorate of Export Promotion & Marketing will be the nodal agency for issue of detailed guidelines for implementation of the above facilities extended to local industries. Director, Export Promotion & Marketing or his nominee will be a member of the purchase committee constituted at levels above the District level in State Government Departments and agencies under the control of State Government. General Manager / Project Manager, DIC or his representative will be a member of purchase committee constituted at District level or below.

24.12 In order to ensure that the policy on marketing support is meticulously followed, the Director, EPM or his representative shall be allowed access to tender papers, purchase documents, books of accounts etc. to ascertain whether there has been any contravention in the implementation of the policy.

24.13 Director, EPM will have the power to draw samples and test the quality of products of local industries from time to time and shall have powers to black list and de-register industries supplying products not conforming to prescribed quality and specifications. He shall have the power to black list local industries for trading in the store item instead of manufacturing.

Directorate of Export Promotion & Marketing (EPM) shall be the Nodal Agency in the matter of administering marketing support related policies to local SSIs under this IPR.

 MARKETING SYNDICATION :

25.1 In order to achieve greater market penetration small scale industrial units selling their products through OSIC and/or NSIC shall be eligible for concessional rate of C.S.T. as per FD notification issued from time to time. In such cases OSIC or NSIC shall raise the invoice or sale memo or bill on the buyer on behalf of the small scale industrial unit. OSIC/NSIC will act as Syndicate Leader for marketing of the products of SSI units of the State and it will be responsible for the overall quality control and collect service charges not exceeding 1% of sale value from the concerned units. In order to derive the benefit of scale major bulk orders of the Government on rate contract items should be routed through OSIC so that it can act as a consortium leader for all the SSI units and organize raw material supply at reasonable rate.

25.2 Purchases by OSIC/NSIC from small scale industry for onward resale shall be exempt from sales tax under O.S.T. Act 1947 provided the sale of such goods by OSIC/NSIC is taxed under O.S.T. Act 1947 at the point where OSIC/NSIC sells such goods. In other words, when OSIC/NSIC buys a product from small scale industry for resale in Orissa, the obligation for collection and deposit of sales tax shifts to OSIC/NSIC.

25.3 Purchases by OSIC/NSIC from any registered dealer for onward sale to small scale industry for use in manufacturing shall be exempt from sales tax under O.S.T. Act 1947 provided the sale of such goods by OSIC/NSIC to the small scale industrial unit is taxed under O.S.T. Act 1947.