Bhubaneswar: Worried with the prospects of impacting a big number of job losses in micro and small scale units in Odisha by the replacement of existing rate contract system with Government e-Marketplace (GeM) by the state government, the Orissa Small Scale Industries Association (OSSIA) has made a plea to for reconsidering its decision given the possible negative fall-out on employment.
“We urge state government not to withdraw Rate Contract system that is applied for 83 items manufactured by local micro and small scale units , when the government adopts GeM (Government e-Marketplace) initiative,” said Samarjit Mohanty, president of Orissa Small Scale Industries Association (OSSIA), Monday.
“Since 1965-66 the state government has adapted rate Contract system to identify and procure around 83 items which are in bulk quantities from local micro and small scale units. This system has been a time tested process of procurement of quality goods at reasonable price and in stipulated time. It also ensures equitable distribution of orders among number of rate contract holding units ensuring symmetrically quality across the state,” Mohanty added.
Highlighting the possible scenarios, Mohanty explained: “If GeM is initiated, there will be no pre/post inspection; no base price fixed for which suppliers from across country may quote much below price to bag the order.” He further added that the lowest bidder will bag the entire orders while other MSEs may have face dearth of orders.
The association members said that they are not opposing GeM adoption but suggesting the government to continue procurement of these goods should come under Rate Contract. It was said that around 721 registered MSE units will affected and they may be shut down as they won’t get alternative market for their products. The association said that around 3 lakh employees may be affected. Currently, government procures around `500- `800cr of items under RCS.
