Bill to bring transparency in public procurement tabled in Lok Sabha

Introduced by finance minister Pranab Mukherjee,the Bill aims to regulate public procurement with the objectives of ensuring transparency,accountability. 8230; fair and equitable treatment of bidders8230;

The proposed legislation will codify the basic norms to regulate public procurement and provide for debarring bidders found engaged in corrupt practices.

The provisions of the Bill will apply to procurement of goods and services of over Rs 50 lakh by Central ministers,autonomous organisations,central public sector enterprises CPSEs and companies where the Centre directly or indirectly,holds more than 51 per cent equity.

For any public procurement activity,the Bill has listed out options,including open competitive bidding,limited competitive bidding,two stage bidding,single source procurement,electronic reverse auctions,request for quotations,spot purchase or any other method that is prescribed by the government.

It has also provided for setting up of a central public procurement portal by the central government and establishment of a system to redress grievance. At present,there is no overarching legislation governing public procurement by the central government and CPSE.

The General Financial Rules,2005,govern procurements made by the Centre. The Bill is based on the recommendations of Committee on Public Procurement headed by former bureaucrat Vinod Dhall which were accepted on February 22 by a Group of Ministers.