Tuesday, January 13, 2015

Public offices to be allowed to pay up to 15% more for local goods - See more at: 

KATHMANDU, Jan 13: The Ministry of Industry (MoI) has revised ´Directive to Increase Consumption of Domestic Goods in Public Offices 2013´, incorporating a number of provisions to make it more workable.

The revised directives, which has recently been sent to the Ministry of Finance and Ministry of Home Affairs for consent, includes a provision which allows public offices to buy Nepali products even if they are dearer than imported products by up to 15 percent.

Similarly, such Nepali product, which does not have Nepal Standard (NS) certification, can get certification from a district level subcommittee, led by the Chief District Officer.

Earlier, the directive barred public offices from buying Nepali goods sans NS certification.

As per the revised directives, the subcommittee is responsible for implementation and monitoring of the use of domestic products in public offices.

The government had introduced the provision of allowing public offices to buy Nepali products even if they are 15 percent expensive than the imported ones two years ago to protect local industries. But the provision failed to meet its objectives as it was not practicable.

Products made using domestic materials or products made using imported raw materials but with value addition of a minimum of 30 percent are defined as domestic products.

Bishnu Prasad Dhakal, assistant spokesperson of MoI, said they have tried to make the directive more practical by incorporating number of provisions as per the suggestions from the local level. "We have added garments, woolen products, medicines, meat products, construction materials, electrical appliances, furniture, decorative items, pashmina, and Dhaka, among others, in the list of products that public offices should buy from domestic producers even if they are expensive than imported ones," he added.

The subcommittee led by CDO can also draw the attention of the office if the government officials are found buying imported products by rejecting domestic products.


This file photo shows a boy collecting ‘Nepali paper’ after it has dried in the sun at Sundarijal.(Bijay Rai/Republica Files)

The government will also award public offices based on consumption of domestic products, and local producers on the basis of supply made to public offices.

In the budget for fiscal year 2014/15, Finance Minister Ram Sharan Mahat had announced to allow public offices to spend up to 15 percent to procure domestic products.“

"Government itself is a big consumer. It can give a boost to industrial sector and also can contribute to national econo”y," Yam Kumari Khatiwada, joint secretary of Ministry of Industry, said.

The contribution of industrial sector in total GDP has been falling in recent years.

MoI plans to send the revised directives to the cabinet for endorsement after getting consent from the two ministries.

Existing Public Procurement Act allows government offices to spend up to 10 percent more for locally produced goods. But the provision has remained in paper so far. - See more at: http://myrepublica.com/portal/index.php/twb/twb/news_rss.php?action=news_details&news_id=90278#sthash.T6UyvY18.dpuf

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