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This is an archive article published on February 19, 2012

Spooked by scams,DAE revamps procurement norms

Roads,Power,Textile ministries follow suit,try to re-invent processes for sourcing and fund disbursement.

In a break from the past,the Department of Atomic Energy (DAE) recently issued instructions to its Directorate of Purchase and Stores to review its procurement process,specifically citing the need to reduce the number of single or limited tenders. Setting aside the oft-used alibi of confidentiality,the department has now directed its purchasing arm to expedite e-procurement wherever feasible,an official involved in the exercise said.

The DAE is not alone. In the wake of the 2G spectrum scandal,government departments and ministries,including the Highways Ministry,Power Ministry and Textiles Ministry,are working overtime to reinvent their sourcing and fund disbursement processes with the aim of clamping down on corruption.

DAE’s move to revamp its procurement processes has come in the wake of admonishment from the Comptroller and Auditor General of India (CAG) which had earlier conducted performance audit of the procurement of stores and inventory management of the units of DAE.

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The auditor,in its report (No.13 of 2010-11),pointed out that substantial procurements made by the department were based on restrictive mode of tendering (single or limited tenders) and as such could achieve only limited competition.

In its defence,the department had maintained that it resorted to single or limited mode of tendering in cases of procurement of “strategic and sensitive materials,technologies and original equipment items”. This was also being done to expedite supplies and ensure confidentiality of the department’s designs and technologies,it said prior to the new set of instructions being issued to broadbase its procurement processes.

The Ministry of Road Transport and Highways too has asked all state governments to adopt e-tendering procedure for execution of road and bridge works on the National Highways and Centrally-financed schemes. Since January 1,the Ministry has stopped reimbursement of expenditure incurred on any work in which e-tendering has not been followed.

The Textile Ministry,according to a senior functionary,has stepped up the internal due diligence over fund disbursements through its flagship interest subsidy scheme called the Technology Upgradation Fund Scheme. All eligible claims need to be pre-authorised by the Textiles Commissioner before approvals. Over and above this,there would be intensive monitoring by an inter-ministerial committee chaired by the Textiles Secretary.

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The Power Ministry is also learnt to have stepped up the vigil on disbursements through its restructured Accelerated Power Development and Reforms Programme,a Rs 51,577-crore scheme that extends loans and grants to distribution utilities for structural reforms.

Most of these measures,insiders say,have been prompted by the heightened vigilance against corruption in the wake of the 2G spectrum scam.

A Highways Ministry official justified the move to go in for e-tendering as it ensured better transparency and reduced tender cycle-time. “This is also expected to result in reducing the labour intensive tasks of receiving bids and is reducing the cost of participation,improved bidder response and increased efficiency. The bidders can even see their status in each tendering process and this improves the audit trail and transparency of the tendering process,” the official said.

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