Lok Sabha Question No. 86 (UNSTARRED), answered on 2016-02-24
Subject: Kendriya Bhandar
Ministry: PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
Asked by: SATISH CHANDRA DUBEY

## GOVERNMENT OF INDIA MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS (DEPARTMENT OF PERSONNEL & TRAINING)

## LOK SABHA UNSTARRED QUESTION NO. 86

(TO BE ANSWERED ON 24.02.2016)

## KENDRIYA BHANDAR

## 86. SHRI SATISH CHANDRA DUBEY:

Will the PRIME MINISTER be pleased to state :

- (a) whether  Kendriya  Bhandar  is  supplying  stationery  and  other  general  items  to  the Government departments at most competitive price since 1981 and if so, the details thereof;
- (b) whether Kendriya Bhandar is a Multi-State Cooperative Society functioning under the aegis of the Ministry of Personnel since 1963; and
- (c) if so, the measures taken to strengthen and reform the working of Kendriya Bhandar for the society?

## ANSWER

Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister's Office. (DR. JITENDRA SINGH)

(a) to (c): Central Government in the year 1963 established Central Government Employees Consumer Cooperative Society now known as Kendriya Bhandar. Kendriya Bhandar is now a registered Society under Multi State Cooperative Societies Act, 2002 and functions under the aegis of Department of Personnel and Training.

Department  of Personnel & Administrative Reforms on 14.7.1981 made it incumbent on  all  Central  Government  Departments,  their  attached/subordinate  offices  etc.  and  other organization financed and/or controlled by Government located at Delhi/New Delhi to make all  local  purchases  of  stationery  and  other  items  required  by  them  only  from  the  Central Government  Employees  Consumer  Cooperative  Society  Ltd.  (now  known  as  Kendriya Bhandar), New Delhi.

Subsequently, the policy was changed and it was decided on 05.07.2007 inter-alia to give a special dispensation in respect of all Central Government Department, their attached and subordinate offices and other organisations financed and/or controlled by them as under:

- i. To make purchases  at their  discretion  of  all  items  required  for  office  consumption upto Rs.1.00 lakh directly from Kendriya Bhandar without calling for quotations.
- ii. To procure all  items  of  office  consumption  beyond  Rs.  1  lakh  to  Rs. 25  lakh  from Kendriya  Bhandar/National  Consumer  Cooperative  Federation  (NCCF)  by  giving purchase  preference  in  case  of  limited  tenders.  Other  things  being  equal,  purchase preference  will  be  granted  to  Kendriya  Bhandar/NCCF,  if  prices  quoted  by  the cooperatives  are  within  10%  of  the  lowest  price  (L1)  and  if  these  cooperatives  are willing to match L1 price.

After  due  consultation  with  Department  of  Expenditure  the  special  dispensation  for local  purchase  of  stationary  and  other  articles  from  Kendriya  Bhandar,  NCCF  and  other Multi-State Cooperative Societies having majority share holding by the Government was not extended beyond 31.3.2015 as it was not found to be cost effective.

It has been ascertained from Kendriya Bhandar that several steps have been taken to streamline  its  business  processes  viz  purchasing,  supply  and  distribution,  computerization, renovation,  adding  of  new  items  etc.  to  improve  its  functioning  efficiency  with  the aim  of providing better services to its customers.

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