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Stores Purchase Programme

The Government is the largest single buyer of a variety of goods, and with a view to increase the share of purchases from small scale sector, the Government Stores Purchase Programme was launched in 1955-56.

The rationale of launching this programme is to direct Government purchases in favour of small industries which will give tremendous boost to the marketing of their quality products and in the process, they will be oriented to produce goods in conformity with the standards laid down by the buying agencies. Initially, the Programme was started with Directorate General of Supplies and Disposals. The Ministry of Supply laid down a procedure for purchase of stores from small scale industries. The role of National Small Industries Corporation (NSIC), in securing for them a large share of Government orders, was also spelt out. The items of stores other than textile items reserved for purchase from the Handloom Sector required by the Central Government departments are categorised under 2 broad heads, namely

- those reserved for exclusive purchase from KVIC/Women's Development Corporations / Small scale sector units and

- other not so reserved.

The first category would comprise items in respect of which the demand can be fully met by the KVIC/Women's Development Corporations / Small Scale Sector units or any combination of these sectors and such items of stores would be reserved for exclusive purchase from them. 409 items reserved for exclusive purchase from the Small Scale Sector continue to be so reserved for KVIC / Women's Development Corporations / Small Scale Sector units.

The eligible small scale units are registered under the Single Point Registration Scheme of NSIC as competent to execute Government Orders.

A provision has also been made for extension of preferential purchase policy in respect of small scale industries to all Central and State Government Departments and Public Sector Enterprises,

- in terms of purchases from small scale sector as per reservation,

- identification of new products made in the small scale sector for purchase and enlarging the number of suppliers,

- effective recognition of the Single Point Registration Scheme of NSIC, and

- exempting units enlisted under the Scheme from payment of earnest money, fee for tender documents and security deposits, and

- prompt payment to small scale units.