THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITIONS No : 14132, 14133 and 14134 of 2010 COMMON ORDER: These writ petitions have been instituted seeking a writ of mandamus for declaring the action of the 1st respondent Andhra Pradesh Medical and Health Housing Infrastructure Development Corporation (henceforth referred to as ‘the Corporation) in not implementing the orders of the State Government contained in their G.O.Ms.No. 51, dated 01.06.2010 and consequently, to direct the 1st respondent to implement the decision of the State Government contained in the aforementioned G.O. It is represented that the writ petitioners are the manufacturing units of drugs and pharmaceutical components. They are also recognized as small-scale industries. The State Government, has taken a policy decision for the purpose of encouraging the small-scale industrial units established within the State of Andhra Pradesh in the matter of procurement of the requisite medicines and other components. Initially, the policy of the State Government was announced through their G.O.Ms.No. 1020, Industries & Commerce (SSI) Department, dated 30.11.1976, which was subsequently reiterated by the State Government through their G.O.Ms.No. 51, Industries and Commerce (MSME) Department, dated 01.06.2010. It will be relevant to note the decision contained in paragraph 7 of the said G.O., which reads as under: “ Government after careful examination of the matter have decided to reiterate the earlier orders issued in G.O.Ms.No. 1020 Ind. & Com. (SSI) Department, dated 30.11.1976. accordingly, all the Government Departments are hereby directed for strict implementation of the same. The Treasury authorities are requested not to admit the Bills for the orders placed in violation of the orders issued in G.O.Ms.No. 1020 Ind. & Com. (SSI) Department, dated 30.11.1976 read with Govt. Memo No. 1541/SSI-A2/93-6 Ind. & Com. (SSI) Department, dated 27.05.1994.” It is this policy decision of the State Government, which, according to the writ petitioners, the 1st respondent Corporation has been neglecting to implement. That neglect of the 1st respondent has given rise to the present Writ Petitions. The policy decision of the State Government, as announced through their G.O.Ms.No. 1020, dated 30.11.1976, has been reiterated as lately as on 01.06.2010, through G.O.Ms.No. 51, dated 01.06.2010. In that, it directed all the Departments and Corporations of the State Government to purchase their requirements only from the local SSI (MSME) units and that they should not buy any of their requirements from outside the State, if they are manufactured and available within the State, subject to the quality of the product, etcetera being equal and that there shall not be any price preference. To my mind, the policy decision of the State Government is to enable its Departments and Corporations to procure their requirements only from the locally available SSI units so long as the quality and the price for which the material is sought to be supplied are competitive enough. Similarly, the products, which are sought to be procured, must be available within the State manufactured by such SSI units located in Andhra Pradesh. These policy decisions do not contain any embargo that the procurements on a large scale, shall not be resorted to by inviting tenders from the open market. There is no such policy decision of the State Government not to float tenders for procuring the requirements of the State. If the policy decision of the State Government enables or allows freedom to procure the material required by it, by inviting tenders, the action of the 1st respondent Corporation in inviting tenders for procuring the drugs and pharmaceuticals components cannot be faulted. I am not able to read into the policy decisions announced by the State Government contained in their G.O.Ms.No. 1020, dated 30.11.1976 or G.O.Ms.No. 51, dated 01.06.2010 that the State Government or any of its Corporations shall not procure their requirements by inviting tenders. These decisions, to my mind, would only enable the State Government’s Departments or Corporations to procure the material from the local SSI units but when once such procurements are sought to be made on a large scale basis, the State Government or any of the Corporations owned by it, cannot deny themselves the benefit of competitiveness amongst the suppliers. For that purpose, invitation of tenders in the open market cannot be faulted at all. Since I am not in a position to read any such embargo in the policy decisions referred to supra, as contended by the writ petitioners herein, I do not find any merit in these Writ Petitions and accordingly, the same are dismissed, but however, without costs. ---------------------------------- Nooty Ramamohana Rao, J 19th October 2010 ksld ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{TRK}