If there exists a situation that it would not be cost effective, after the expiry of the period of their guarantee or warrantee specified by their manufacturers, to repair, maintain and bring into use any motor vehicles, machineries, equipment, devices, chemicals, fertilizers, pesticides or other goods of similar nature owned by a public entity and they would not yield results conforming to the standards specified by such manufacturing companies or cannot be reused or purposeful, and that it would not be appropriate to keep storing them or even to auction them from the point of view of public health or environment, the public entity may ascertain such a situation and return the old goods to the concerned manufacturer, authorized seller or supplier and obtain in exchange the new goods of similar nature from the same manufacturer, authorized seller or supplier.
(2) In making an exchange pursuant to sub-section (1), procurement shall be made by making a procurement contract after obtaining a proposal of valuation of the old goods from the manufacturer, authorized seller or supplier of such goods after deducting the valuated amount of the old goods from the specified selling price of the new goods.
(3) The quality of the new goods to be procured pursuant to this Rule has to be certified by the recognized institution.
(4) In making the procurement contract pursuant to sub-rule (2), it has to specify whether or not the new goods to be procured can be re-exchanged by using this method after their life-cycle.
(5) In making procurement pursuant to sub-rule (1), the public entity shall so procure only after preparing a list of the old goods and new goods available in the market and obtaining the approval of the head of department.
(6) The method referred to in sub-rule (1) shall not be used in the procurement actions requiring the multi-year contract.