Government of pun ia b Dcpartment of Indusrries ani Cummerce (Controller of Stores)
N o,COS I Pp O -20r 9 | | //p 6
ORDER
Subject: Public Procurement (preference to Dated
Make in Punjab) Order 2019.
oZ-"94"/ 7
'fhe Governor. of punjab is,
Public Procurement (pr.eference to Make hereby, pleased to accord Approval to in Punjabr Order 2019, This will givc a fillip to the manufacturing sector in punjab through incentivizing locai value addition, by pr.oviding them a purchase preference in public procurement done by lhe slate Covt. depaflmenrs and its agencies.
Whcreas, it is the policy of the Government of punjab to promote manufacturing and production of goods in lrunjab with a vierv to enhance income and employt.nent gener.alion, and whereas, pl.ocurement by the Govemment is substantial in amount and can contribute towards this policy objective. 'firerefore, the following order is issued with regard to procurement of goods by procuring entities. It is clarified that this ordef does not apply to procurement of services and works conrracts:_
L Definitions: For the purposes ofthis order:
Local content means the amounl ol value added in punjab which shall be the total value of the item procured minus the value addition to the item outside the state of Punjab (excluding taxes), as a proportion of the total value, in pelcent.
Local supplier n.reans a supplier whose product offered for procuremenr meets the minirnum local content as prescribed under this orqcr or oy competent Depaftments in pursuance ofthis order.
L-l means the lowest tender or lowest bid or lowest quotation received in a tender, bidding process ol.other procurement solicitation as adjudged in the evaluation process as per the tender or othcr procurernent solicitation.
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Margin of purchase preference means pnce quoted by a local supplier rnay be the maximum extent to which the above rhe L-l for lhe purpose of purchase preference.
Procuring entity means a department or subordinate orfice, autonomous body, boards, colporalions ownecl or controlled by the Governrnent ot Punjab, and includes the urban local bodies and pRls in the starc. Works Contract means a contract as defined u/s 65 ofFinance Act. Divisiblc goods'rean goods which can be broken up into smaller units ror procurentent.
2. Requirement of Purchase preference: Subject to the provisions of this order, purchase preference shall be given to local suppliers in all procuremenrs undenaken by procur.ing entities controlled by the Govemment ol,punjab in the mannel specitied hereundeL.
a) In procurement of goods where there is sufficient local capacity and locai competition so that there are at least six local manufaclurers/suppliers eligible as per the tender conditions as identified by concerneo qepanment and where the estimated value of procurement is Rs. 30lakhs or less only local suppliers shall be eligible.
b) In the procurements of goods which are not covered by paragraph (a)i.e. estimated va|:e of procurement is more than 30 lakhs or there is not sufficient local capacity present and in case of goods which are divisible in nature, the following procedure shall be followed.
i. Among all qualified bids, the lowest bid will be termed as L1,lf Ll is fiom a local supplier/manufacturer, the contract for lull quantity will be awarded to L I (subject to capacity).
ii, If Ll bid is not from a local supplier, 50% (subject to capacity) of the order quantity shall be awarded to L1. Thereafter, the lowest bidder. among the local suppliers will be invited to match the Ll price fbr thc remaining 50% quantity subject to the local suppliers quoted price falling within the prescribed nlargin of purchase preference and contract for that quantity shall be awarded to such local supplier subject to matching the Ll plice. In case such lorvest eligible local supplier fails to match the 1,1 price or accepts less than the offered quantity the next higher locai supplier/manufactur.er within the margin of purchase preference shall be invited to match the Ll price for r.emaining quantiry
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and so on. And contract shall be awarded accordingly. ln case some qLlanttty is still left uncovered on iocal suppliers, then such balance quantrty may also be ordered on the Ll bidder.
c) In procurements of goods no1 covered by sub_paragraph (a) and which are not divisible and where the bid is evaluated on price alone the following procedure shajl be lbllowed:
i. Among all qualified bids, the lowest bid wili be tenned as Lt. if Ll is 1'rom a local supplier, the contract will be awarded to Ll.
ii. If Ll is not from a local supplier, the lowest bidder among the local suppliers will be invited to match the [,] price subject to local supplier,s quoted price lalling within the margin of purchase preference and the contract shall be awar.ded to such local supplier subject to matching the L I price.
iii. In case such lowest eligible local supplier lails to match the Ll price, the local supplier with the next higher bid within the margin of purchase preference shall be invited to match the Ll pnce and so on and contract shall be awarded accordingly, In case none of the local sr.rppliers within the margin of purchase preference matches the L1 price then the contract may be awarded to the [,] bidder.
3. Exemption of small purchases: Notwithstanding anything contained in paragraph 3, procurements where the estir.nated varue to be prccured is less than Rs. I laklr shall be exempt from this Order. Flowever., it shall be ensured by ploculing entities that procurement is not spilt for the purpose of.avoiding the provisions of this Order.
zl. Minimum local content: The minimum local content shall ordinarily be 40%. The concerned deparhnent may prescribe a higher or lower percentage in respect of any particular item and n.ray also prescr.ibe the manner of calculation ol local content.
5. Prescribed Margin of Purchase preference: The prescribed marAin of purchase preference shall be 15%.
6, Requirement for specification in advance: The minimum local content, the prescribed margin of purchase preference and the procedure 1br preference shall be specified in the notice inviting tenders or other for.m of procuremenr solicitation and shall not be varied during a par.ticular procurement transaction,
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b.
7. Exemption: Concerned Deparlments should eniist the items which are to be exempted fr.om this order within three months from date of issuance ot this order and this list should be sent to Mernber Secretary, Standing Committee.
8. Verification of local content:
a.
The local manufacturer/supplier at the time of tender, bidding or solicitation shall be required to provide self_certification that the item offered meets the minirnum local content and shall give details of the location(s) at which the local value addition is rnade.
ln case of procurement for a value in excess of Rs. 2crores, the local manufacturer/supprier shalr be required to provide a ceftificate fiom the statutory auditor or cost auditor of the company (in the case ol cornpanres) ol f'rom a practicing cost accountant or practicing charlered accountant (rn respecl of suppliers other than companies) giving the percentage of local content.
Every local manufacturer/supplier shall be required to give a ceftificate detailing the local content in his product. This list shall be put jn public domain and 7 working days shall be provided for.filing any claim/obJection regarding the genuineness of this certificate. If no crain/objection is received witl'rin the prescribed period, the local content cefiificate shall be deemed to be correct.
Concerned Depaftlnent may constitute committees with internal ano exremal experls for independent verification of self_declarations and auditor's/accountant's certificates on random basis and in the case ol. courplaints. For this purpose, the concerned department may seek help from Controller ol Stores.
c.
d.
e. Any claim/objection regarding the genuineness ofce(ificate oflocal content shall be filed by the complainant on an affidavit ofRs.25. False declarations under Para(8a) and (8b)will lead to debarment and blacklisting ofsuch suppliers for two years by the procur.ing entities. A supplier who has been debarred by any procuring entity for violation of this Order shall not be eligible for preference under this order for pl'ocurement by any other procuring entity for the duration ofthe debarmenr. 'lhe list of such debaned suppliers under this Order by any procuring entity shall be sent to O/o Controller of Stores, Punjab, and consolidated list of c.
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deban'ed and blacklisted suppliers shall be circulated to all other Govt. Depafiments,
h. A Committee under Chairmanship of Controller of Stores, rs consnruled with following members :
I. Finance department nominee: _Member IL Excise and Taxation Commissioner or his nominee: _ Member Ill. Contr.oller, printing & stationary : _ Member
IV. Additional Controller, Controller of Stores: _ Member Secr.erary V. Director, Department of Governance Refbrms or his nominee: _ Member
This Comrr.rittee will look into all the issues related to debarment:
(i) 'I'he tbct and duration ofdebarment lbr violation ofthis Order by any procunng entity shall be promptly brought to the notice of this Committee through the concerned Deparlment or in some other manner.
(ii) On a periodical basis suclr cases will be consolidated and a centralized list or decentralized list ofsuch suppliers with the periocl ofdebanr.rcnt will be maintained with this Committee.
(iii) In lespect of pr.ocuring entities other than the one which has carried ou1 tlte debannent, the debarment shall take el.fect prospectively, lrorn the date of debannent order issued, in such a manner tnar ongorng procurements are not disrupted.
(iv) All disputes related to debarment by procuring entities shall be considcred by this comrnittee .
Specifications in Tender and other procurement solicitations:
Proculing entities shall endeavour to see that eligibility conditions, including on matters )ike turnover, production capability and financial strength do not result in unreasonable exclusion of local suppliers who would otherwise be eligible, beyond what is essential for ensuring quality or creditwofthincss of the supplier.
Plocuring entities shall within 3 months ofthe issue ofthis policy review all existing eligibility norms and conditions with reference to paragraplt'a' above.
9.
a.
D.
l0.Assessment of supply base by Departments: The Concerned Depallment shall keep in view the domestic manufacturing/supply base and assess lhe
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available capacity and the extent ol local competition while identitying items and prescribing minimum local content or the manner o1, its calculation, with a view to avoid cost from the operation ofthe Order.
11. Standing Committee: A Standing Comn.rittee is hereby constituted with the fbllowing rrernbership:
I ) Administrative Secretary, Department of lndustries and Commerce _ Chairperson
2) Adrninistr.ative Secretary, Department of Finance -Member
3) Administrative Secretary, Department of t{ealth and Family Welfare Mernber'
4) Administrative Secretary, Department olpublic Works_Member
5) Admir.ristrative Secretary, Department of School Education_ Member
6) Administrative Secretary, Department of Water Supply and Sanitation- Member
7) Administrative Secretary, Depaftment ofLocal Government _ Member
8) Administrative Secretary, Department of Rural Developrnent and panchayat - Member
9) Dilector, lndustries and Commerce -Member Secretary The Secretary of the department concerned with a parlicular itern shall be a Member in respect of issues relating to such item. The Chairn.ran of the Committee may co-opt technical expefts as relevant to any issue or class of isslles under its consideration.
12. Functions of the Standing Comrrittee: 'l he Standing Committee shall meet as often as necessary as but not less than once in six months.'ltre Cofrmiftee a. shall oversee the implementation of this order and issues arising there from and makc recommendations to the procuring entities.
b. shall annually assess and periodically monitor compliance ofthis Or.der. c. may require furnishing of details or retums regarding compliance of this Ordel and related matters.
d. may dr-rling annual review, or otherwise, assess issues if any, where it is felt that thc manner of inplementation of the order results in any restrictivc practices, cartelization or increase in public expenditure and suggest remedial measures.
e. may consider any other issue relating to this Order which rray arise. t. shall take decisions on all complaints relating to implernentation o1, this order.
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g. May exempt any padicular item or procuring or supplying entitles or class or ciasses of items or procuring or supplying entities irom tie operation ofthispolicy or any part ofthe Order..
13. Removal of difficulties: Any difficulty arising in the implementation of this Order by any procuring entity shall be referred by them to the Department of Industries and commerce, punjab, which shall issue such clarification or instfuctions as may be necessary for removal ofthese difficulties.
14. Departments having existing policies: Wherever any Depaftment has its own policy fbr prefurence to local content, this order shalr prevair over the provisions of such existing policies.
15. Transitional provision: This Order shall not apply to procurement for which notice inviting tender or other form solicitation has been issued belore the issue of this Order. any tender of
of procurement
'fhis Order
Government of Punjab
25.07.2019.
Dated:09.08.2019 Indsr. No. t'OS/PPO-2}t9///74 T Depaftment for official use. issues with the approval of the Council of Ministers, conveyed vide letter No.l/90/2019-l cabinetl 2557 dated:
Vini Mahajan, IAS
Additional Chief Secretary to Covt of punjab Depaftment of Industries and Corrmerce
A copy of the above is forwarded to Controller, printing ancl stationary, Punjab, Chandigarh with request that this order may be published in next issue of Punjab Govt. Extra Ordinary Gazette and supply lO0copies to this Endsl. No. COS/PPO-2019/ // E;E- 2 1
A copy of the above is forwarded to the
please:
(ll
(i,)
Dated: 03-67-So/2
Special Secretd-ry t
Vernment of Punjab Department of Industries and Commerce Dated: o 3*6 ,-2 o/ 7
following lor infolmation
'fhe ChiefPrincipal Secretary to Chief Minister, Punjab The Chief Secretary, Punjab
Special Sec
ernment of Punjab Depaftment of Industries and Commerce
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A copy of the above is forwarded to the following for info please:
(i) All the Special Chief Secretaries/ Additional Secretaries,Tinancial Commissioners,{principal Secr Administrative Secretaries, punjab
(ii) All Deputy Commissioners in the State of puniab (iii) ChieiExecutive Officer. punjab Bureau oflnvestment promot (iv) The Director oflndustries & Commerce. puniab (vt All General Managers, Districr Indusrries Centre in the :
Punjab
(vi) All the Direct Demanding Officers in the State ofpuniab Endst No. COSIPPO-2019 I )/ TJ o - 1 1 5,4 7
Dated: o3-of-, Special S
Govemment of Department ofIndustries and Comrr Endsr. No. COS/ppO-2019t /lgJat oated:.oJ-ol-)"/f Special S
Department oflndustries and Comm
A copy is forwarded to the following for uploading the sane website of Printing & Stationery Department, piniab for puUtirt ing ,n" . rne extra ordlnary gazette.
(i) The Nodal Officer (e-gazette-printing & stationery) o/o Depanmen Industries & Commerce, punjab.
Govemment of
/f
atlon
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