SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has called for an immediate investigation into alleged malpractices in the tendering process for the procurement of furniture for Kissan Khidmat Ghar (KKG) units in Baramulla. The organisation has accused the Chief Agriculture Officer of imposing arbitrary conditions that violate established norms, favouring select traders and sidelining local manufacturers.
In a statement, FCIK highlighted that the tender, issued under e-NIT No: 05/ASCE/Bla/119-27/2024-25 on November 20, 2024, carried an estimated cost of ₹254 lakh. Eight bids were reportedly received, including from both traders and manufacturers. However, six of these bids were disqualified on grounds of documentation deficiencies. FCIK alleges that these disqualifications stemmed from the department’s imposition of arbitrary turnover and earnest money criteria.
FCIK pointed out that the General Financial Rules (GFR) issued by the Union Ministry of Finance stipulate that a bidder’s average turnover should not exceed 40% of the estimated bid value. For the ₹254-lakh tender, the turnover requirement should have been ₹101 lakh. Instead, the tender demanded a turnover of ₹10 crore, a figure FCIK claims was deliberately inflated to exclude local MSMEs.
The FCIK President further noted that under the Public Procurement Policy outlined in the MSME Act, micro, small, and medium enterprises (MSMEs) are exempt from paying tender document fees and earnest money deposits. He stated that local manufacturers had provided sufficient evidence of compliance with these guidelines but were still disqualified.
FCIK has sought the intervention of the Mission Director of the Holistic Agriculture Development Programme (HADP) and the District Development Commissioner of Baramulla, urging them to revise the turnover and earnest money criteria in accordance with government guidelines. The Federation emphasised that reconsidering disqualified bids could reveal lower-cost options, saving public funds and ensuring better value for taxpayers.
“To save public funds, it would be more effective to conduct a probe before awarding contracts at higher costs rather than addressing the issue after supplies have been made,” said the FCIK President.
The FCIK has demanded a thorough investigation into the tendering process to uncover any irregularities and assign accountability. The Federation has also assured local MSMEs that it will continue to advocate for their rights, stressing the need for transparency and adherence to established guidelines.
The statement concluded with a warning that FCIK would take further action if the matter is not resolved, reaffirming its commitment to protecting the interests of the local industrial community.
