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    View of the Industrial Area, Umiam, Ri Bhoi District, Meghalaya
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    View of the Cement Plant at Lumshnong, East Jaintia Hills District, Meghalaya
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    View of the Cement Plant at Industrial Area, Umaim, Ri Bhoi District, Meghalaya
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    Industries at Industrial Estate

Meghalaya Perferential Stores Purchase Rules, 1990 (M.P.S.P. Rules, 1990)

In order to encourage the growth of Industries especially Small Scale and Cottage Industries in the State, MPSPR has been established  to patronise  their manufactured products on a preferential basis and to rationalise the procedure for purchase of stores required by Government vide letter number Ind.315/88/69.

In this regard the Governor of Meghalaya made  the following Rules:-

1. Short title, extent and commencement:

  1. These Rules may be called the Meghalaya Preferential Stores Purchase Rules, 1990.
  2. They shall extend to all the purchase of stores made by State Government Departments, Institutions, Agencies, undertakings, Corporations, Companies etc., of the State Government.
  3. They shall come into force at one.

Note : 

  1. In their application to the Meghalaya State Electricity Board and State Government Corporations and Companies, these Rules shall be deemed to be directives given by the State Government under the relevant enabling provision of law or Articles of Association, as the case may be.
  2. Due observance of these Rules by the Institutions shall be deemed to be a condition of all grants given to them by the State Government whether or not such a condition be specifically mentioned while giving such grants.

2. Definitions :

In these Rules, unless there is anything repugnant in the subject or context. 

  1. 'Board' means the Meghalaya Stores Purchase Review Board Constituted under Rule 3;
  2. 'Director' means the Director Industries, Meghalaya or his authorised representative;
  3. 'Registered Units' mean the Industrial un registered permanently with the Director of Industries;
  4. 'Purchase Board' means the Purchase Board constituted under Rule 9 (2);
  5. 'Purchasing authority' means the person or authority which is duly authorised or competent to make purchases of stores for his or its Department, office or organisation;
  6. 'State Government' means the Government of the State of Meghalaya ;
  7. 'Stores' mean and include all manufactured, assembled and processed items;

3. Constitutions of the Board :

There shall be constituted a Meghalaya Stores Purchase Review Board consisting of the following :


  1. Special Secretary/Secretary to the Government of Meghalaya, Industries Department.


  1. Special Secretary/ Secretary to the Government of Meghalaya, Finance Department.
  2. Special Secretary/ Secretary to the Government of Meghalaya, Secretariat Administration Department.
  3. Special Secretary/ Secretary to the Government of Meghalaya, General Administration Department.
  4. Chief Engineer, P.W.D. Meghalaya.
  5. Chief Engineer, P.H.E. Meghalaya.
  6. Principal Chief Conservator of Forest , Meghalaya.
  7. Director of Public Instruction, Meghalaya.
  8. Director of Agriculture, Meghalaya
  9. Director of Health Service, Meghalaya.
  10. Director General of Police, Meghalaya,
  11. Inspector General of Prisons, Meghalaya.
  12. hief Engineer, Meghalaya Electricity Board, Meghalaya.
  13. Director of Community Development, Meghalaya.

Member Secretary:

  1. Director of Industries, Meghalaya.

The State Government may change composition of the Board from time to time. 

4. Meeting of the Board and Quorum :

  1. The Board shall meet as often as may be required.
  2. The notice for a Board Meeting shall normally be issued at least 7 days in advance
  3. A minimum of four members besides the Chairman and the Member Secretary shall form a quorum.

5. Powers and functions of the Board:

  1. The board shall supervise and review the proper implementation of these Rules and of the basic policy underlying them.
  2. The Board shall, subject to such policy directives as may be given by the State Government from time to time, be competent to lay down purchase policies and procedures, which shall be binding on the purchasing authorities and the Purchase Boards. 
  3. Without prejudice to the generality of the foregoing provision the Board may :- 
    1. Decide whether in respect of any items of stores or any registered industries, any earnest money or security deposit should be prescribed.
    2. Decide whether the purchase of any item or items of stores should be made directly from registered units only and, if so, to lay down the guidelines for price fixation.
    3. Constitute Committees as may be required for the effective implementation of these Rules.
    4. Lay down standards for quality of the items of stores wherever possible.
    5. Clarify doubts and remove difficulties encountered in implementing the rules.

6. Registration of Industries : 

  1. All registered units shall be treated as registered for the purpose of these Rules.
  2. When a unit quotes for any item to be purchased by Departments or organisation referred to in Rule 1 (2), a Certificate from the General Manager, District Industries Centre of the District where the unit is located, has to be furnished regarding capacity of the unit to meet the order.
  3. If the Board is satisfied, after giving the registered unit concerned a reasonable opportunity of being heard, that the unit had furnished false information or defaulted in supplying stores in accordance with its commitments or had supplied short or sub-standard stores or had indulged in any other undesirable activity, the Board may cancel the registration for such further period not exceeding 5 years as it may consider necessary, and also forfeit its security deposit and earnest money, if any, besides taking such other legal or administrative action as may be permissible.

7. Exemption from payment of Earnest money or Security deposit : 

Units registered under these Rules shall be exempted from paying the earnest money and security deposit for items in respect of which they are registered. However, they will have to pay earnest money and/or security deposit whenever so required by the Board under Rule 5 (3)(a). 

8. Preference :

  1. Any Department or organisation referred to in Rule 1 (2) making purchase of any items of stores shall invite open tenders/quotations and a copy of the same shall be sent to the Director/General manager, District Industries Centre of each District provided no other policy has been laid down by the Board for these items of stores.
  2. Units registered under these rules shall be entitled to a price preference upto 10 percent over other units/firms.
  3. In preparing comparative statement of the tenders/quotations the state taxes should be excluded but Central: Sales Tax, Excise duty (if applicable) packing, forwarding etc., charges shall be included.
  4. Other things being equal, purchasing departments and organisations shall give preference to units registered under these rules over those not so registered.
  5. Every possible effort should be made to substitute items imported from outside the State with those manufactured within the State.

9. Miscellaneous :

  1. All purchasing authorities shall purchase stores according to the financial powers respectively delegated to them duly observing these and all other relevant rules, procedures and instructions. In case of conflict between these Rules and any other administrative (not statutory) rules, instructions or procedures these Rules shall prevail. Wherever these Rules conflict with any law or Rules having the force of law, the latter will prevail. In such cases of conflict the purchasing authorities shall report the fact to the State Government in the Industries Department.
  2. Each State Government Department shall constitute at least one purchase Board which shall have the Director as one of its members. In the event of any dissent by the Director from the Majority decision of any such Purchase Board in respect of items under these Rules, the matter shall be referred to the Board for a decision about the policy involved. If the Stores are required urgently and no decision is received from the Board within a period of ten days from the date of its receiving such a reference, the purchasing authority may make the purchase without waiting for the Board's decision.
  3. The purchasing authorities shall make necessary arrangement for inspection of quality, etc. of the items and disputes about quality may be referred to the Board.
  4. All purchasing authorities are to ensure that bills of registered units for stores supplied must be promptly paid and in no case latter than 1 month from the date of presentation of bills failing which the registered units shall be entitled to charge the rate of interest prescribed from time to time for working capital be lending financial institutions.
  5. Items of stores not manufactured by any of the registered units may be purchased in accordance with the other relevant rules, procedures or instructions in force from time to time.
  6. All units registered with the Director of Industries taking advantage of the rule should submit yearly returns to the Director of Industries in the prescribed form given in Schedule I.

10. Repeal and Savings:

  1. The Meghalaya Preferential Stores, Purchase Rules, 1978 are hereby repealed.
  2. Not withstanding the repeal all action taken under these rules repealed shall be deemed to have been validly taken under the corresponding provisions of these Rules.

Schedule I
Under Rule 9 (6) 

Name and Address of the Unit :  
Registered Number :  
Annual Stores Purchase Return, year : 
Name of Purchasing Department : 


Items Quantity Value  Remarks (Please indicate difficulties/suggestion for improvement of the Stores purchase policy.
Total :      

Signature :

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