Purchasing In Government Organizations

With the aim of providing the best possible service to the society out of the limited resources and following its policy of mixed economy, the Government of India has itself entered into manufacturing and other types of commercial and trading activities. To gain the advantages of centralized purchase all Governmental purchase operations are controlled by a central agency, the Directorate General of Supplies and Disposal (DGS & D), New Delhi headed by its Director General (Supplies and Disposal) under the Ministry of Supply, Government of India. The DGS & D is responsible for all purchase of materials of all kinds and functions as a purchasing and inspection agency on behalf of:

• All Ministries, attaché’s and subordinate offices of Government of India.
• All State Governments and their departments.
• All local bodies, such as, Municipal Corporations, District Boards, etc
• All Quasi-public Institutions, Statutory Corporations and Public Sector industrial undertakings may also avail of the services of the DGS & D.

It also makes purchases from foreign countries through its subsidiaries like the Indian Supply Mission in London and Washington. It also purchases from East European and South-Eastern countries on trade agreements and has a full-fledged Inspection Directorate in Japan.

Organization Set-up of DGS & D

The role of the DGS & D is very wide and, for smooth and efficient functioning, it is divided into following wings:

• Supply
• Inspection
• Progress
• Disposal

The organization has regional offices located at Calcutta, Bombay, Kanpur and Madras. Besides, there is a regional-office at Bombay exclusively for textiles. The regional offices are empowered to purchase a large number of items provided the individual demand for them does not exceed Rs. 6 lakhs. All items financed through foreign loans are purchased by the HQ irrespective of their nature and value.

In addition to the activities carried through its wings, the DGS & D performs following functions and has directorates and offices all over the country.

• Public Relations and Publications
• Standardization and Quality Control
• Development of Indigenous Sources of Supplies
• Purchases from Cottage and Small Scale Industries
• Registration of Suppliers
• Termination, Suspension and Black-listing of Suppliers
• Rate and Running Contracts
• Payment Procedure
• Indent Processing.