Government introduces Public procurement bill 2012 in Parliament

The government has introduced the Public Procurement Bill 2012 in the Lok Sabha that seeks to seeks to regulate award of government contracts above Rs 50 lakh to ensure "transparency, accountability and probity" in state purchases.

The legislation proposes imprisonment of up to five years for public servant found guilty of accepting bribe and vitiating bidding process in order to check corruption and ensure transparency in public procurement.
The crucial bill, introduced by finance minister Pranab Mukherjee, is aimed at ensuring "fair and equitable treatment of bidders, promoting competition, enhancing efficiency and economy, and maintaining integrity and public confidence in the procurement process" the object of the bill says.

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

Currently, there is no overarching legislation governing public procurement by the central government and central public sector enterprises. 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, headed by Mukherjee, to tackle corruption.