Revamp of public procurement norms

NEW DELHI: The Ministry of Finance is revamping the public procurement measures by putting in place a new system of centralised regulations with de-centralised procurement systems. This was revealed by the joint secretary at the ministry of finance SC Pandey, during a joint conference conducted by Assocham-World Bank in the capital on Friday.

Addressing the conference, he said, “The new system will provide for separate public procurement mechanism for the defence and railways sector, as huge purchases are done in these two areas. A general monitoring mechanism shall also be provided for other departments to ensure transparency in procurement of government contracts.”

“The state governments purchases would be regulated with a system that is evolved at central level, empowering them to take their own decisions,” he added.

He also informed that the government is considering the suggestion of setting up of Public Procurement Commission. It is believed that such a step would facilitate settlement of any dispute resulting from its new public procurement policy.

Speaking at the conference, Rachid Benmessaoud, head of World Bank, India said, “It is necessary for India to be pro-active in its efforts to support improvements in public procurement system given its importance for private sector growth and dynamism.”