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In the year 1860, the British Government set up India Stores Department in London under a concept of centralized buying to meeting procurement needs of Government of India.
Post Independence, DGPP was established as the Central Purchase Organization of Government of India under Ministry of Commerce & Industry, established in 1951 for rendering procurement & disposal services to Central/State Government/PSUs /Autonomous Bodies, etc.
It has two specialized wings: Supply & Quality Assurance Wing, manned by two Group-A cadres; Indian Supply Service (ISS) and Indian Inspection Service (IIS) recruitment for which is made through Engineering Service Examination conducted by UPSC, Govt. of India.
After de-centralization of Ad-hoc procurements in December, 1991, the main focus of DGPP has been to conclude rate contracts for common user goods and services.
DGPP is nodal organization for hosting upcoming Government e-Market (GeM) for facilitating on-line purchases of common user goods and services by government buyers and to bring more transparency, efficiency, and speed in public procurement.
The inspection of stores by Quality Assurance (QA) Wing is optional, left to the discretion of the User Departments. In case the User Department avails services of the QA Wing, the Inspection services shall be rendered on chargeable basis. QA Wing also undertakes inspection of stores outside the rate contract on chargeable basis, under exceptional circumstances, with the approval of DG(PP).
The payment to suppliers has been decentralized and is to be made directly by the User Organizations.