By opting for procurement through e-procurement, Karnataka Government has been able to reduce 10 per cent in the bid amount, leading to huge savings.

According to Karnataka’s Medium Term Fiscal Plan 2013-17 report, tabled in the Assembly recently, “e-procurement project has increased the bidder participation by two to five times.”

“In the last four years procurements worth Rs 1.61 lakh crore have been made using this platform. This platform is currently being used by 33,000 suppliers and contractors,” the MTFP report said.

The government introduced 100 per cent transparency in procurement with six departments in 2007, now it encompasses 227 departments and organisations.

Considering the impact of the platform in ushering transparency and savings, the government has made it mandatory for all its departments and organisations to procure goods and services or undertake construction works exceeding Rs 5 lakh on the e-Procurement portal.

Treasury automation

On the integrated financial management system, the government has introduced Khajane II - the treasury automation application of the finance department. The project is an advanced and expanded initiative to replace the present ‘Khajane’.

“The new system is expected to improve efficiency, and help the users particularly decision making effective, transparent and accountable and informed financial decisions,” MTFP report said.

“Also departmental heads will be aware of scheme implementation and the knowledge of the financial status of each scheme will give them the flexibility not only to monitor effectively, but will allow them room for juggling their finances to achieve best results,” report added.

The project is to have an online system of release of funds, preparation of bills, and have customized MIS of expenditure incurred along with trending facilities and calculate the cash balance position.

“From the citizen’s perspective, the benefits will be 90 per cent payments through electronic mode, facility to pay government taxes, fees & fines online,” the report explained.

The project has been awarded to Tata Consultancy Services after a three-stage tendering process which included application development, hardware deployment and maintenance for a period of seven years.

Project cost

The total cost of the project that includes civil infrastructure upgradation of 218 treasuries, and project related cost inclusive of TPA fee, consultancy fee and Project Monitoring Unit expenses is Rs 91 crore.

MTFP report said “After discussions with stakeholders on the modalities and technical feasibility. It is expected that the pilot will be on during October 2013 in two treasuries and their related sub treasuries.”

As a provision for a Third Party Auditor (TPA) and ensure that it meets the technical and functional requirements, KPMG has been appointed.

(This article was published on February 20, 2013)
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