Mumbai: The government has decided to end the purchase preference policy (PPP) for products and services of state-run firms from March next year and provide level-playing field to private players.

"The union cabinet today gave its approval to the earlier decision of the government that PPP for products and services of CPSEs will be terminated with effect from March 31 next year," P R Dasmunsi, minister of information and broadcasting, told reporters after a meeting of cabinet committee on economic affairs (CCEA).

"The decision will result in a level-playing field between CPSEs and private sector players and increase competition," Dasmunsi pointed out.

The CCEA, however, said concerned ministries and departments can independently evolve preferential policies for the sectors of their concern as per their requirement and move the supreme court.

The supreme court had, in its order on May 18, directed that concerned ministries and departments should review the policy within four months from the date of the judgement.

"The supreme court has already been requested to extend the time for review as the matter involved consultation with various agencies," he said.

This policy for products and services of CPSEs has been in vogue since 1992. Under it, a CPSE could enjoy purchase preference if the price quoted by it falls within 10 per cent of the L-1 price, which is later matched by it, Dasmunsi said.

The government had reviewed the preferential purchase policy time and again but without any modifications.