The Employees’ State Insurance Corporation (ESIC) has issued a circular urging all ESIC and ESIS institutions to strictly comply with the requirement of submitting consolidated quarterly non-supply/late supply reports and risk purchase deductions under the Central Rate Contracts.
Despite previous directions, several institutions have failed to report instances of non-supply and related penalties, prompting a strong reminder from the ESIC Headquarters.
⚠️ Background & Compliance Requirement:
As per DG ESIC Central Rate Contract Nos. 142C-146C, 147B, 149-153, 154-158, and 159-164, it is mandatory for all Direct Demanding Officers (DDOs) to:
- Maintain records of non-supply or late supply by pharmaceutical firms.
- Report risk purchase penalties and pending deductions.
- Submit a consolidated quarterly report with Chief DDO’s comments in the prescribed proforma.
These reports are critical for enforcing contract conditions and penal provisions.
📝 Key Points from the Circular:
📦 Supply Terms & Delivery Period:
- Firms must deliver drugs within 6 weeks of the order date.
- Late delivery attracts a penalty of 2% per week, capped at 10% of the order value.
- An extension of up to 5 weeks is allowed with penalty and prior approval.
⚠️ Risk Purchase Provision:
- If the defaulting firm fails to supply, ESIC can procure from alternative sources.
- The extra cost incurred (risk purchase) will be recovered from the defaulting firm.
- Recovery will be made through deductions from payable amounts or future contracts.
🚫 Penalties for Repeated Defaults:
- If a firm fails to supply on three occasions, it will be:
- Debarred for 2 years.
- Performance security forfeited.
- Debarment applies nationwide across all ESIC/ESIS locations.
📌 Rate Preference and Order Placement:
- Orders must be placed first to L1 (lowest rate) firms.
- In case of non-supply, risk purchase must be done from the next eligible firm at higher approved rates.
📅 Deadline for Report Submission:
All institutions must submit consolidated reports for the period from October 2021 to June 30, 2025, by September 15, 2025.
Reports should be sent via email to dmc-rc.hqrs@esic.gov.in in both Excel and PDF formats.
🏥 Institutional Responsibility:
All Deans, Medical Superintendents, and DIMS of ESIC/ESIS institutions across states are directed to ensure compliance without fail. ESIC HQ has taken serious note of non-compliance and emphasized that this is a mandatory requirement under the contract terms.
📤 Prescribed Reporting Proforma Includes:
- RC Item No. & Drug Name
- Name of the Firm
- Supply Order No. & Date
- Preference Level (L1/L2/L3)
- Quantity Not Supplied
- Risk Purchase / Penalty Amount
- Payment & Deduction Status
- Remarks
✅ Conclusion:
This circular reinforces ESIC’s commitment to ensuring timely delivery of essential medicines and accountability of pharmaceutical vendors. Timely submission of these reports is crucial for maintaining uninterrupted medical supplies and financial transparency across all ESIC medical institutions.