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The initial phase is to be rolled out in four departments — the AP State Road Transport Corporation, AP Technology Services, AP Health and Medical Housing Infrastructure Development Corporation, and the Commissionerate of Tenders.

HYDERABAD, June 18

COMMERCE One, the Nasdaq-listed Internet solutions firm, has been mandated the task of developing a first of its kind eProcurement exchange aimed at meeting the complex procurement requirements of multiple departments of the State Government.

The consortium of companies headed by Commerce One, and including Microsoft, Compaq and Antares, has bagged this project amidst stiff competition through a competitive bidding process.

A memorandum of understanding was entered into by Commerce 1 India, a subsidiary of Commerce One, and the State Government here on Monday in the presence of the Andhra Pradesh Chief Minister, Mr N. Chandrababu Naidu.

Mr Naidu later said that this IT initiative was part of the State Government's efforts to increase efficiencies in all its departments through faster and more transparent, automated procurement procedures.

Spread over four phases, the project — named e-sekarana — will involve the implementation of Commerce One's eProcurement solution that would cater to all State Government's departments, including local bodies such as municipal corporations, their vendors and the cooperative sector.

As an extension of this project, all tenders floated by the Government would be made through the new system. The Principal Secretary, Information Technology and Communication, Mr J. Satayanarayana, said State Government's total procurement was around Rs 8,000 crore. "We believe that in the next three years, the majority of this procurement shall happen online through this new initiative across all the 150 departments of the Government." The Chief Operating Officer, C1 India, Mr Vivek Agarwal, said, "We have won this project after a rigorous evaluation by the State Government and PricewaterhouseCoopers over a four months period. Our technology will meet the requirements of the diverse needs of the Government.''

The initial phase is to be rolled out in four departments — the AP State Road Transport Corporation, AP Technology Services, AP Health and Medical Housing Infrastructure Development Corporation, and the Commissionerate of Tenders.

On completion in these departments, it is to be replicated and implemented in other departments in the State. A revenue sharing model had also been adopted, he said.

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