LexThe Maharashtra Medical Goods Procurement Authority Act, 2023.
Maharashtra · state statute
Open in Lexace · Ask the AI about this act2023 : Mah. XIII] 1
THE MAHARASHTRA MEDICAL GOODS PROCUREMENT
AUTHORITY ACT, 2023
[Text as on 8th April 2025]
_____________
CONTENTS
PREAMBLE.
SECTIONS.
CHAPTER I
PRELIMINARY
1. Short title and commencement.
2. Definitions.
CHAPTER II
ESTABLISHMENT AND COMPOSITION OF MAHARASHTRA MEDICAL
GOODS PROCUREMENT AUTHORITY
3. Establishment of Maharashtra Medical Goods Procurement Authority.
4. Composition of Procurement Authority.
5. Objectives of Procurement Authority.
6. Powers and functions of Procurement Authority.
7. Procedure for procurement of medical goods.
CHAPTER III
EXECUTIVE COMMITTEE
8. Constitution of Executive Committee.
9. Powers and functions of Executive Committee.
10. Meetings of Executive Committee.
11. Constitution of sub-committees.
12. Delegation of powers or functions by Executive Committee.
13. Authentication of orders, etc., of Procurement Authority and Executive Committee.
14. Proceedings presumed to be good and valid.
15. Provision for inviting Government or local authority officers to assist or advise.
CHAPTER IV
CHIEF EXECUTIVE OFFICER
16. Chief Executive Officer and his Powers, Functions and Duties.
17. Supervision by Chief Executive Officer.
18. Responsibility of Chief Executive Officer.
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CHAPTER V
OFFICERS AND EMPLOYEES
19. Officers and employees of Procurement Authority.
CHAPTER VI
FINANCE, BUDGET AND ACCOUNTS
20. Fund of Procurement Authority.
21. Reserve and other funds.
22. Application of funds, etc.
23. Grants by State Government.
24. Powers of Procurement Authority to borrow.
25. State Guarantee to loans taken or given by Procurement Authority.
26. Accounts and Audit.
27. Budget.
28. Annual Report.
29. Operations of Procurement Authority not to be carried at a loss.
30. Fees or charges by Procurement Authority.
CHAPTER VII
MISCELLANEOUS
31. Control by State Government.
32. Power to give directions.
33. Power to delegate.
34. Officers and other employees of Procurement Authority to be public servants.
35. Indemnity.
36. Power to make regulations.
37. Power to make rules.
38. Power to remove difficulty.
2023 : Mah. XIII] The Maharashtra Medical Goods Procurement 3
Authority Act, 2023
MAHARASHTRA ACT No. XIII OF 20231
[THE MAHARASHTRA MEDICAL GOODS PROCUREMENT AUTHORITY ACT, 2023.]
[This Act received the assent of the Governor on the 16th March 2023; assent was first published
in the Maharashtra Government Gazette, Extraordinary No. 14, Part IV, on the 17th March 2023.]
An Act to make special provisions for ensuring single point procurement of certain medical
goods and execution of turnkey projects with highest standards of transparency, fairness, equity
and for timely supply at optimum and uniform rates and of desired quality and quantity for
health institutions under the State Government and certain other health institutions through the
Maharashtra Medical Goods Procurement Authority and for the matters connected therewith or
incidental thereto.
WHEREAS it is expedient to enact a new law to make special provisions for ensuring single
point procurement of certain medical goods and execution of turnkey projects with highest standards of
transparency, fairness, equity and for timely supply at optimum and uniform rates and of desired
quality and quantity for health institutions under the State G overnment and certain other health
institutions through the Maharashtra Medical Goods Procurement Authority and for the matters
connected therewith or incidental thereto, for the purposes aforesaid; it is hereby enacted in the
Seventy-fourth Year of the Republic of India as follows :—
CHAPTER I
PRELIMINARY
1. Short title and commencement. — (1) This Act may be called the Maharashtra Medical
Goods Procurement Authority Act, 2023.
(2) It shall come into force on such date as the State Government may, by notification in the
Official Gazette, appoint.
2. Definitions.— In this Act, unless the context otherwise requires,—
(a) “appointed day” means the date on which the provisions of this Act shall come into
force under sub-section (2) of section;
(b) “Chief Executive Officer ” means the Chief Executive Officer of the Procurement
Authority established under this Act;
(c) “medical consumables ” includes gloves, syringes, bandages, cotton wool , sutures,
catheters, tubes, infusion sets, I.V. cannulas, etc., laboratory supplies including pipettes, blood
collecting tubes and microscope supplies and surgical instruments such as scalpels, f orceps,
lancets, scissors, etc.;
(d) “medical device” means any instrument, apparatus, implement, machine, appliance,
implant, reagent for use, software, material or other similar or related article, intended by the
manufacturer to be used, alone or in combination, for human beings, for one or more of t he
specific medical purpose of,—
(i) diagnosis, prevention, monitoring, treatment or alleviation of disease,
(ii) diagnosis, monitoring, treatment, alleviation of or healing of an injury,
(iii) investigation, replacement, modification or support of the anatomy or of a
physiological process,
(iv) supporting or sustaining life,
(v) control of conception,
1 For Statement of Object s and Reasons of the L. A. Bill No. V of 2023 , see Maharashtra Government Gazette , 2023,
Extraordinary No. 5, Part V-A, dated the 28th February 2023, page 12.
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(vi) disinfection of medical devices,
(vii) providing information by means of examination of specimens derived from the
human body,
and does not achieve its primary inte nded action by pharmacological, immunological
or metabolic means, in or on the human body, but which may be assisted in its intended
function by such means;
(e) “medical equipment ” means the medical devices requiring calibration, maintenance,
repair, user training and decommissioning – activities (usually managed by clinical or biomedical
engineers) used for the specific purposes of diagnosis and treatment of disease or rehabilitation
following disease or injury of human beings and can be used either alone or in combination with
any accessory, consumable or other piece of medical device or medical equipment but excludes
implantable, disposable or single-use medical devices;
(f) “medical goods” means medicines, medical consumables, medical devices, medical
equipments or execution of turnkey projects therefor; and includes any other medical goods as the
State Government may, from time to time, in consultation with Procurement Authority, by
notification in the Official Gazette, specify, to be the medical goods for the purposes of this Act;
(g) “prescribed” means prescribed by rules made under this Act;
(h) “procure” or “procurement” means the process of purchase, storage or supply of the
medical goods;
(i) “Procurement Authority” means the Maharashtra Medical Goods Procurement Authority
established under sub-section (1) of section 3;
(j) “regulations” means the regulations made under this Act;
(k) “rules” means the rules made under this Act;
(l) “Secretary” means Additional Chief Secretary or Principal Secretary or Secretary of any
administrative Department of the State Government.
CHAPTER II
ESTABLISHMENT AND COMPOSITION OF MAHARASHTRA MEDICAL
GOODS PROCUREMENT AUTHORITY
3. Establishment of Maharashtra Medical Goods Procurement Authority. — (1) As soon as
may be after the appointed date, the State Government shall, by notification in the Official Gazette,
establish an authority to be called “the Maharashtra Medical Goods Procurement Authority”, for the
purposes of this Act.
(2) The Procurement Authority shall be a body corporate, having perpetual succession and a
common seal, with power to acquire, hold and dispose off property, both movable and immovable, and
by the said name may sue and be sued.
4. Composition of Procurement Authority. — (1) The Procurement Authority shall consist of
the following Chairperson, Deputy Chairpersons and Members, ex-officio, namely :—
(a) the Chief Minister - Chairperson;
(b) the Minister for Public Health - Deputy Chairperson;
(c) the Minister for Medical Education - Deputy Chairperson;
(d) the Minister for Food and Drugs Administration - Deputy Chairperson;
(e) the Minister of State for Public Health - Member;
(f) the Minister of State for Medical Education - Member;
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Authority Act, 2023
(g) the Minist er of State for Food and Drugs
Administration
- Member;
(h) the Chief Secretary to Government of Maharashtra - Member;
(i) the Secretary–I of Public Health Department - Member;
(j) the Secretary–II of Public Health Department - Member;
(k) the Secretary of Medical Education and Drugs
Department
- Member;
(l) the Secretary of Industries Department - Member;
(m) the Secretary of Finance Department - Member;
(n) the Secret ary–(UD-II) of Urban Development
Department
- Member;
(o) the Commissioner, Health Services - Member;
(p) the Ch ief Executive Officer of the Procurement
Authority
- Member––Secretary.
(2) The Chairperson may delegate all or any of his powers or functions under this Act to any one
of the Deputy Chairperson as he deems fit.
(3) The Procurement Authority shall meet at least once in six months, at such place and at such
time as the Chairperson may decide and shall observe such rules of procedure in regard to the
transaction of business at its meetings (including the quorum thereat) as may be laid down by
regulations.
(4) The Chairperson shall preside at the meetings of the Authority. In absence of the Chairperson
at any meeting, any other member of the Authority elected by the members present at the meeting shall
preside at such meeting.
5. Objectives of Procurement Authority. — The objectives of the Procurement Authority shall
be to procure medical goods for,—
(a) the Public Health Department of the Government of Maharashtra;
(b) the Medical Education and Drugs Department of the Government of Maharashtra
(excluding turnkey projects);
(c) any other Department of the Government of Maharashtra, the urban or the rural local
authorities or for any other authority or entity established, by or under any law, by the State
Government, if they so request;
(d) the Central Government, other State Governments, Union Territories, or urban or rural
local authorities of other States or other authority or entity established by or under any law by the
Central Government or the other State Government or the Union Territory, if they so request;
(e) private hospitals, trust hospitals, private organizations, non -Governmental organization,
trust or international organisation, if they so request.
6. Powers and functions of Procurement Authority. — The Procurement Authority shall, for
the purposes of procurement of the medical goods, exercise the powers and discharge the functions, as
follows, namely :—
(a) to prepare and review any financial plan for procurement;
(b) to supervise the functioning of the Executive Committee;
(c) to take policy level decisions related to the functions of the Procurement Authority;
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(d) to recommend to the State Government any matter or proposal requiring action by the
State Government or any other authority for the overall p rocurement and supply of medical
goods;
(e) to recommend procurement policy to the State Government regarding purchase of
medicines and equipments;
(f) to procure medical goods and execute turnkey projects therefor and their timely
availability and distribution to the consignee locations;
(g) to co -ordinate with other Government agencies and departments for procurement
purposes;
(h) to oversee the procurement process for streamlining supply of medical goods;
(i) to supervise or otherwise ensure adequate supervision over the planning and execution of
any procurement process, the expenses of which, in whole or in part, are to be met from the
Procurement Authority Fund;
(j) to bring transparency and accountability in procurement process of medical goods; and
(k) such other powers and functions as may be prescribed.
7. Procedure for procurement of medical goods. — (1) A demand for procurement of the
medical goods shall be generated by the concerned administrative Department and after giving
administrative approva l, the proposal for its purchase shall be forwarded by the concerned
Administrative Department to the Procurement Authority for procurement. The Procurement Authority
shall thereafter carry out the procurement procedure as per provisions of this Act and ru les and
regulations made thereunder.
(2) The Procurement process shall be carried out by the Procurement Authority as per the orders
issued by the Industries Department of the State Government through the Government Resolutions, the
Government e-Market Place (GeM Portal) guidelines and any other relevant guidelines on procurement
issued by the State Government, from time to time.
CHAPTER III
EXECUTIVE COMMITTEE
8. Constitution of Executive Committee.— There shall be an Executive Committee of the
Procurement Authority consisting of the following Chairperson and Members, ex-officio, namely :—
(a) the Chief Secretary to Government - Chairperson;
(b) the Secretary–I of Public Health Department - Member;
(c) the Secretary–II of Public Health Department - Member;
(d) the Secretary of Medical Education and Drugs
Department
- Member;
(e) the Secretary of Industries Department - Member;
(f) the Secretary of Finance Department - Member;
(g) the Secretary–(UD-II) of Urban Development
Department
- Member;
(h) the Commissioner, Health Services - Member;
(i) the Co mmissioner of Medical Education and
Research
- Member;
(j) the Director–I, Health Services - Member;
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Authority Act, 2023
(k) the Chief Executive Of ficer of the
Procurement Authority
- Member—Secretary.
9. Powers and functions of Executive Committee.— (1) The Executive Committee shall
exercise the powers and discharge the functions, as follows, namely :—
(i) to appoint officers and employees of Procurement Authority;
(ii) to supervise the procurement process as executed by the Chief Executive Officer;
(iii) to plan, implement and supervise procurement of medical goods and execution of
turnkey projects therefor;
(iv) to approve or reject tenders o r processes of procurement under the Procurement
Authority in cases which are not covered by existing procurement guidelines but are necessitated
by the prevailing circumstances during that period;
(v) to invest the surplus money, if any, of the Procurement Authority Fund;
(vi) to institute, conduct and withdraw any legal proceedings on behalf of the Procurement
Authority;
(vii) such other powers (except the power to make regulations) delegated or the functions
assigned or duties imposed, from time to time, on the Executive Committee by the Procurement
Authority.
10. Meetings of Executive Committee. — The Executive Committee shall meet at such place
and at such time as may be determined by its Chairperson, and shall observe such rules of procedure as
it may determine.
11. Constitution of sub -committees.— (1) The Executive Committee may constitute such sub -
committees and any other committees including Tender Approval Committee, and for such purpose or
purposes, as it may think fit; and entrust to any such committee such powers as the Executive
Committee may specify.
(2) The sub -committees constituted under sub -section ( 1) shall meet at such place and at such
time, and shall observe such rules of procedure in regard to the transaction of business at its meet ings
as may be directed by the Executive Committee.
(3) The Executive Committee shall, from time to time, by order, determine the powers and duties
of the sub-committees appointed by it.
12. Delegation of powers or functions by Executive Committee. — The Executive Committee
may, from time to time, by resolution passed in this behalf, direct that any power or function which is
conferred on it, by or under the provisions of this Act, shall be exercised or performed by the Chief
Executive Officer.
13. Authent ication of orders, etc., of Procurement Authority and Executive
Committee. — All proceedings of the Procurement Authority and the Executive Committee shall be
authenticated by the signature of the Chief Executive Officer or by any other officer of the
Procurement Authority authorized by the Chief Executive Officer in this behalf.
14. Proceedings presumed to be good and valid. — No act or proceeding of the Procurement
Authority or any of its committees shall be invalid by reason only of a vacancy therein, or any defect in
the appointment of any person acting as the Chairperson or Deputy Chairperson or Member, if such act
or proceeding is otherwise in accordance with the provisions of this Act.
15. Provision for inviting Government or local authority officers to assist or advise. — The
Procurement Authority or the Executive Committee may invite any officer of the Government or the
local authority or any other person as it deems fit to attend its meeting or meetings as a special invitee
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for the purpose of assist ing or advising it on any matter or matters, connected with the objectives and
functions of the Procurement Authority, but he shall have no right to vote.
CHAPTER IV
CHIEF EXECUTIVE OFFICER
16. Chief Executive Officer and his Powers, Functions and Duties.— (1) The Chief Executive
Officer shall be the executive and administrative head of the Procurement Authority and shall exercise
such powers and perform such duties as are assigned to him by or under this Act or the rules or the
regulations made thereunder and shall exercise such powers and perform such functions as the
Authority may, by a resolution, delegate to him.
(2) The Chief Executive Officer shall be the head of the Tender Approval Committee. The Tender
Approval Committee shall approve and finalize all tenders. The Chief Executive Officer may, in
exceptional cases, place tenders before the Executive Committee for its decision.
(3) The Chief Executive Officer shall exercise the powers and discharge the functions, as
follows, namely :—
(a) to form Ten der Approval Committee and various subcommittees for the purposes of
procurement as directed by the Executive Committee;
(b) to monitor the progress of purchases made by the Authority;
(c) to take regular review of finance and accounts of the Authority;
(d) to develop benchmarks for continuous improvement of organization;
(e) such other powers, functions and duties as may be prescribed.
17. Supervision by Chief Executive Officer.— The Chief Executive Officer shall supervise and
control all its officers and employees, including any officers of the Government appointed, from time
to time, on deputation or otherwise to the Procurement Authority.
18. Responsibility of Chief Executive Officer.— The Chief Executive Officer shall be
responsible for collection of all sums due to the Procurement Authority and payment of all sums
payable by the Authority and shall ensure adequate security of all assets, including cash balances of the
Authority. The Chief Executive Officer shall also be responsible for performing all executive functions
in connection with the works of the Authority.
CHAPTER V
OFFICERS AND EMPLOYEES
19. Officers and employees of Procurement Authority. — (1) The State Government shall
appoint the Chief Executive Officer from the Indian Administrative Services Cadre.
(2) The State Government shall, to assist the Procurement Authority, appoint one or more of the
following officers :—
(a) General Manager (Technical), who shall be of the rank of the Joint Director under the
Public Health Department or equivalent thereto;
(b) General Manager (Administration), who shall be of the rank of the Joint Secretary to the
State Government or equivalent thereto;
(c) Assistant General Manager (Technical), who shall be of the rank of the Deputy Director
under the Public Health Department or of the rank of the Dean or Professor or Associate
Professor under the Medical Education and Drugs Department or equivalent thereto;
(d) Technical Officer, wh o shall be of the rank of the Assistant Director under the Public
Health Department or equivalent thereto;
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Authority Act, 2023
(e) Chief Accounts and Finance Officer (Accounts), who shall be of the rank of the Joint
Director, Finance and Accounts under the Finance Department or equivalent thereto;
(f) Chief Administrative Officer (Administration), who shall be of the rank of the Under
Secretary to the State Government or equivalent thereto.
(3) The Procurement Authority may, from time to time, create posts of officers and empl oyees,
other than those mentioned in sub -section (2), as it thinks necessary. The conditions of appointment,
conditions of service and the powers and duties of such officers and employees shall be such as may be
determined by regulations. The Procurement A uthority may appoint officers and employees on
contractual basis, as and when required.
CHAPTER VI
FINANCE, BUDGET AND ACCOUNTS
20. Fund of Procurement Authority.— (1) There shall be a fund of the Procu rement Authority
to be called “the Medical Goods Procurement Fund”, to which shall be credited all moneys received by
the Authority, including,—
(a) all grants and such other moneys as may be paid to the Authority by the State
Government;
(b) such moneys as may be paid to the Authority by the Central Government or any other
State Government or Union Territory or any other authority or agency;
(c) all fees, costs and charges received by the Authority under this Act or any other law for
the time being in force;
(d) all other fees and charges received towards services rendered and towards administrative
procedure of the Authority;
(e) all moneys borrowed by the Authority;
(f) any bequests, donations, endowments or other grants made by private individuals or
institutions;
(g) all moneys received by the Authority by way of rents or in any other manner or from any
other source.
(2) The Procurement Authority may keep in current or deposit account with the State Bank of
India or with any Nationalized Bank or with any other bank as approved by the State Governmen t in
this behalf, such sum of money out of its fund as may be prescribed, and any money in excess of the
said sum shall be invested in such manner as may be approved by the State Government.
(3) Such accounts shall be operated by such officers of the Procu rement Authority as may be
authorized by it by regulations made in this behalf.
21. Reserve and other funds. — (1) The Procurement Authority shall make provisions for a
reserve fund and may provide for other specially denominated funds as it deems fit.
(2) The management of the funds referred to in sub -section (1), the sums to be transferred from
time to time to the credit thereof and the application of money comprised therein, shall be determined
by the Procurement Authority.
22. Application of funds, etc.— All property, funds and other assets vesting in the Procurement
Authority shall be held and applied by it for the purposes and subject to the provisions of this Act.
23. Grants by State Government. — The State Government shall provide grant in aid for t he
first two years from the establishment of the Procurement Authority for salary component of staff and
other office support expenses or till the time the Procurement Authority becomes self -sustainable,
whichever is earlier.
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24. Powers of Procurement Authority to borrow.— The Procurement Authority may, with the
previous approval of the State Government, borrow any moneys for carrying out the purposes of this
Act or for servicing any loan obtained by it, at such rates and on such conditions, as the State
Government may determine at the time the moneys are borrowed.
25. State Guarantee to loans taken or given by Procurement Authority. — The State
Government may guarantee repayment of the principal of, and interest on, any loan raised or given by
the Procurement Authority or transferred to it for the purposes of this Act, subject to such conditions as
the State Government may think fit to impose.
26. Accounts and Audit.— (1) The Procurement Authority shall keep accounts in such form and
in such manner as it may, by regulations made in this behalf, determine.
(2) The accounts of the Procurement Authority shall be audited by the Chief Auditor, Local Fund
Accounts or by any other auditor appointed by the State Government, from time to time.
(3) The audit shall be made in such manner as may be determined by the regulations.
(4) The auditor shall submit his audit report to the Procurement Authority and shall forward a
copy thereof to the State Government.
27. Budget. — (1) The Member -Secretary of the Procurement Aut hority shall prepare, every
year, in such form and at such time as may be prescribed, an annual budget estimate in respect of the
next ensuing financial year showing the estimated receipts and disbursements of the Procurement
Authority and shall submit it to the Procurement Authority for approval.
(2) The Member -Secretary shall forward to the State Government copies of the budget estimate
so prepared by him and the budget as approved by the Procurement Authority.
28. Annual Report. — The Procurement Authority shall prepare after the end of each year
(ending on the 31st day of March), a report of its activities during the previous year and submit it to the
State Government before the 30 th day of November and the State Government shall cause a copy of
such report to be laid before the State Legislature.
29. Operations of Procurement Authority not to be carried at a loss. — (1) The Procurement
Authority shall not and shall not be required to carry out any of its operations under this Act at a loss.
Any deficit in the Medical Procurement Fund caused due to procurement in any financial year shall be
made good by the Authority not later than those of the next succeeding financial year.
(2) The Procurement Authority shall not place any orders to the successful bidders till the time
fund is received at their end from the user institution.
30. Fees or charges by Procurement Authority. — The Procurement Authority shall take fees
or charges for carrying out the procurement process at such rate or r ates as the State Government may,
by notification in the Official Gazette, specify.
CHAPTER VII
MISCELLANEOUS
31. Control by State Government. — (1) The Procurement Authority shall exercise its powers
and perform its duties under this Act in accordance with the policy framed and guidelines laid down,
from time to time, by the State Government for procurement of the medical goods in the State.
(2) The Procurement Authority shall be bound to comply with such directions which may be
issued, from time to time, by the State Government for efficient administration of this Act.
32. Power to give directions. — The State Government may, from time to time, issue such
general or special directions, to the Executive Committee in respect of policy matters as it deems
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necessary or expedient for the purpose of carrying out the objectives of this Act and the Executive
Committee shall be bound to follow and act upon such directions.
33. Power to delegate. — The Procurement Authority may, by resolution, delegate from time t o
time, any power (except the power to make regulations) exercisable by it or any function to be
discharged or any duty to be performed by it by or under this Act to the Chief Executive Officer or the
Executive Committee, subject to such terms and conditions as may be specified in such resolution.
34. Officers and other employees of Procurement Authority to be public servants. — Every
member, officer and other employees of the Procurement Authority and every member of the
Committees or sub-committees constituted under this Act shall be deemed to be a public servant within
the meaning of section 21 of the Indian Penal Code (45 of 1860).
35. Indemnity.— No suit, prosecution or other legal proceeding shall lie against any member or
any officer or other employe e of the Procurement Authority and any member of Committees
constituted under this Act for anything done in good faith under this Act.
36. Power to make regulations. — The Procurement Authority may, from time to time, make
regulations, not inconsistent wit h the provisions of this Act and the rules made thereunder, for all or
any of the matters to be provided under this Act by regulations and generally for all other matters for
which provision is, in the opinion of the Authority, necessary for the exercise o f its powers and the
discharge of its functions under this Act.
37. Power to make rules. — (1) The State Government may, by notification in the Official
Gazette, make rules to carry out the purposes of this Act.
(2) Every rule made under this Act shall be laid as soon as may be after it is made before each
House of the State Legislature while it is in session for a total period of thirty days which may be
comprised in one session or in two successive sessions, and if before the expiry of the session in which
it is so laid or the session immediately following, both Houses agree in making any modification in the
rule or both Houses agree that the rule should not be made, and notify their decision to that effect in the
Official Gazette, the rule shall from the date of publication of such decision in the Official Gazette,
have effect only in such modified form or be of no effect, as the case may be; so, however, that any
such modification or annulment shall be without pre judice to the validity of anything previously done
or omitted to be done under that rule.
38. Power to remove difficulty. — (1) If any difficulty arises in giving effect to any of the
provisions of this Act, the State Government may, as occasion arises, by an order published in the
Official Gazette, do anything not inconsistent with the provisions of this Act, which appears to it to be
necessary or expedient for the purpose of removing the difficulty:
Provided that, no such order shall be made after the exp iry of a period of two years from the date
of commencement of this Act.
(2) Every order made under sub -section ( 1) shall be laid, as soon as may be, after it is made,
before each House of the State Legislature.