Bihar govt asks depts to prioritise domestically manufactured goods

As part of its efforts to promote domestically manufactured goods, the Bihar govt has directed all state-controlled bodies to accord priority and provide price preference to products manufactured

As part of its efforts to promote domestically manufactured goods, the Bihar government has directed all state-controlled bodies to accord priority and provide price preference to products manufactured by industrial units located within the state.

In a circular issued to all corporations and autonomous bodies, the department of industries has asked them to strictly follow the state's 'Purchase Preference Policy-2002' and 'The Bihar Finance (Amendment) Rules, 2005' during government procurements.

All departments of the state government have also been directed to abide by the directive, starting next financial year.

"The notification will certainly provide impetus to domestic manufacturers and suppliers. It will also lead to growth in employment opportunities and income," Samir Kumar Mahaseth, the state industries minister, told PTI.

Explaining further, the minister said that goods produced by the large or medium industries that are located and registered in Bihar will be given up to two per cent price preference compared to those manufactured outside the state.

As for small industries, the price preference may go up to seven per cent, he said.

"In line with the provisions of the Bihar Finance (Amendment) Rules, 2005', no relaxation will be made in terms of quality and specifications.

"All details, including the quantity, quality and price, of the goods purchased from industries located outside Bihar, especially those purchased in the previous year, must be submitted to the government so that efforts could be made to manufacture these within the state," he stated.

Welcoming the government move, P K Agrawal, president, Bihar Chamber of Commerce and Industries, suggested that a monitoring body should be established to ensure proper implementation of the rules and policies.

"We have long been demanding the strict implementation of Bihar's Purchase Preference Policy. It's great that the state government has finally decided to strictly enforce it in the stateit's a boost for the domestic manufacturers," he added.

According to Bihar Economic Survey (2022-23), food products, textiles, fabricated metal products, rubber, other non-metallic mineral products, and plastic goods are the top five industries in the state, in terms of number of units, fixed capital, employment, output and gross value).