Termination of Purchase Preference Policy of CPSEs

New Delhi, Oct 25 (UNI) The Government will communicate to the Supreme Court that the Purchase Preference Policy for product and services of CPSEs will be terminated on March 31, 2008, to provide a level playing field to the private players.

It will also inform the apex court that the preferencial purchase policies framed for the specific sectors by the ministries concerned do not come under the Purchase Preference Policy of CPSEs, and that the ministries have to independently review these policies, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after the Cabinet meeting that took the decision.

The Supreme Court, in its May 18 judgement, had directed that the ministries concerned should review the Purchase Preference Policy within four months from the date of the judgement.

The Court has already been requested to extend the time for review as the matter involved consultation with various agencies.

The Policy, in vogue since 1992, was last reviewed on June 30, 2005 and guidelines, with certain modifications, was issued on July 18 this year.

Under the Policy, if the price quoted by a central public sector enterprise (CPSE) is within 10 per cent of the valid bid price, then purchase preference may be granted to the CPSE concerned if the enterprise is ready to pay the valid bid price.

UNI