Jammu Power Development Dept flouting Industrial Policy norms; denying price/ purchase preference to MSMEs

Jammu, Dec 22 (KNN) The Jammu based micro, small and medium enterprises (MSMEs) have raised concerns over denial of price/ purchase preference given to the small scale industries engaged in manufacturing of transformers by the Power Development Department (PDD) in the tenders floated by it.

The sector has alleged that PDD is flouting the norms of Industrial Policy 2016 and not placing the orders to local units.

In this regards, a delegation of Bari Brahman Industries Association (BBIA) under the Chairmanship of its President Lalit Mahajan, President, BBIA and other office bearers met Dheeraj Gupta, Commissioner/Secretary PDD to discuss the issues related to industrial sector.

During the Course of discussions, Mahajan raised serious concern on behalf of the MSME sector with respect to the Denial of Price/Purchase Preference to local SSI Units by the PDD Department resulting great resentment amongst the unit holders.

“Recently PDD floated some tenders and the local SSI units engaged in the manufacturing of Transformers quoted their rates and their rates are 7% above the landed cost of the Outside Supplier which is well within the provision of the Industrial Policy 2016 for placing orders in favour of the local SSI Units but the Department is violating the Industrial Policy 2016 by not placing the orders to the local units which shows the Negative attitude of the Departments for the Growth of SSI Sector of our State,” Mahajan said.

“Further the matter is more complicated by the Department on the issue of Landed Cost which we termed as harassment to the local SSI Units as the landed cost is always calculated on the basis FOR destination for the supply of goods by the Outside Suppliers while calculating price comparison with local SSI Units,” he added.

As per the Industrial Policy 2016, it is mandatory for all the Government Departments to purchase the material from the Local SSI Units with a price preference up to 15% on the landed cost of the outside suppliers for all the Government purchases.

“The department is not adhering to the Government order for the reason best known to the concerned officials of PDD,” Mahajan said.

The other issues discussed during the meeting was Restoration of 24X7 Power Supply to Industrial Sector, Release of Pending Power connections of Industrial Sector, Non Commissioning of BB III 33KV Line, Non availability of Spares and Consumables at Receiving Stations, Ease of Doing Business Concept to be adopted by the Power Development Department with the delegation of Powers for the sanction of Power Load, Implementation of Decision taken in respect of Simple Interest chargeable on the outstanding payments of Power Bills.

Dheeraj Gupta, Commissioner/Secretary assured the delegation to resolve the issues on the priority basis. (KNN Bureau)