Bhubaneswar: In an effort to ensure greater transparency in the procurement of construction materials and prevent arbitrary pricing, the Odisha government issued a new Standard Operating Procedure (SOP) for fixing cement and steel rates for development works executed under the Panchayati Raj and Drinking Water Department.
Sources said the new mechanism empowers district-level committees, headed by the respective District Collectors, to finalise the prices of cement and steel every three months. The revised system is expected to ensure uniform pricing, reduce delays in project execution and streamline procurement across rural development projects.
The Panchayati Raj and Drinking Water Department has issued detailed guidelines to all District Collectors, who also serve as District Programme Coordinators (DPCs), and Chief Development Officers-cum-Executive Officers (CDO-cum-EOs) of Zilla Parishads.
According to the SOP, each district will constitute a committee chaired by the Collector. The committee will include the CDO-cum-EO as member-convener, along with the Additional Executive Officer (Technical) of the Zilla Parishad, a Superintending or Executive Engineer from the Roads and Buildings or Rural Development Department, two Block Development Officers (BDOs), and two Assistant Executive Engineers.
The committee will determine district-wise cement and steel prices once every quarter and upload the approved rates for implementation.
The decision comes after the government observed delays in updating prices due to dependence on quarterly price data from the Works Department. The delay often affected estimates, procurement and execution of rural infrastructure projects.
Under the revised guidelines, district authorities will collect quotations directly from cement manufacturers operating in the state. The final cement price will be based on the average factory price quoted by at least three companies.
For steel procurement, preference will be given to prices quoted by the Steel Authority of India Limited (SAIL). If SAIL products are unavailable, prices of other companies approved by the Works Department may be considered.
Apart from pricing, the SOP also lays down strict quality norms. Only steel conforming to Bureau of Indian Standards (BIS) specifications will be permitted for government projects. Independent quality testing may be carried out wherever necessary, while procurement must be made only from reputed integrated steel manufacturers.
The government has also made district-level committees fully accountable for any discrepancies in price determination.
