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India : CENTRE plans to bring in public procurement law
Publish Date : 28-Jul-2015
The Centre is planning to bring in a public procurement law, which was introduced by the former government but was never approved in Parliament, to boost transparency and be consistent with global norms.
Finance minister Arun Jaitley was himself pushing the bill which aims to check wrongdoing and ensure transparency in procurement by the central government and its entities.
The central law, which will also be a model for similar state legislation, stipulates open competitive bidding as the preferred method of procurement.
Moreover, the government requires the bill as a selling point in free-trade discussions with various countries, which have been looking to enter into India's profitable public procurement business.
Though officials said India may not open up the segment to the global group of European countries, government procurement is among the areas being negotiated in the India-EU trade discussions.
Public procurement by the Centre, states, municipal bodies and PSUs represents 25% of the country's GDP, or about $600 billion.
The policy may be dovetailed with the Make in India program. The norms may either bar foreign entities or introduce a points system to give preference to local players and small and medium enterprises.
