New Public Procurement Bill by Narendra Modi government aims to help ‘Make in India’ goals work

NEW DELHI: The Modi government has dusted off an UPA-era legislation to usher in greater transparency in public procurement and facilitate free-trade talks with countries and prepared a new bill, proposing key changes that will help meet ‘ Make in India’ goals.

The revamped Public Procurement Bill, 2015, drops a key provision that made it applicable only to transactions above Rs 50 lakh.

The new bill, which is likely to be moved in Parliament in the winter session, proposes a uniform, streamlined process so as to eliminate any confusion with regard to procurements below Rs 50 lakh.



The bill will also soften previously stringent preconditions for bidders to encourage competitive and healthy bidding.

ET has learnt that provisions for an additional fine and jail term for public servants accepting bribes are being dropped and only clauses of the Indian Penal Code will apply to such officers.

The grievance redressal mechanism will be strengthened to ensure that complaints are not summarily dismissed. A three-member procurement redressal committee, including a retired high court judge, will be replaced by a single-member panel to fast-track the process.

The Public Procurement Bill, 2012, was introduced in the Lok Sabha by the UPA “to regulate public procurement with the objectives of ensuring transparency, accountability and probity in the procurement process, fair and equitable treatment of bidders, promoting competition, enhancing efficiency and economy, maintaining integrity and public confidence in the public procurement process.”

ET view: Enact law, but reform poll funding

Government procurement accounts for nearly 30% of the GDP. So the case for a robust law to curb corruption in public procurement is compelling. It will help the government save money, improve its balance sheet and put the economy in a better shape.

Creating an institutional structure consistent with the UN Commission on International Trade Law model is a good idea. The Opposition should come on board. But the law, when enacted, should be enforced properly. The government should also address the larger issue of reform in political funding if it is serious about curbing graft.