Policy

GoM okays draft public procurement Bill

PTI New Delhi | Updated on February 22, 2012

The draft Public Procurement Bill, which seeks to regulate Government purchases using a transparent bidding process, was today approved by a panel of ministers set up to tackle corruption.

“The Group of Ministers on Corruption has approved the Public Procurement Bill,” the Minister of State for Personnel, Mr V. Narayanasamy, told reporters after the meet.

The draft Bill was recently put up in public domain by the Finance Ministry to elicit opinion. A fresh draft incorporating public views was cleared by the GoM.

“It will now go to the Prime Minister (for approval) and then to the Cabinet (for final clearance),” Mr Narayanasamy said.

He said the Bill could come up during the Budget session of Parliament.

The proposed Bill contains broad principles and would be supplemented by rules.

It also facilitates a grievance redressal mechanism and penalties for offences, including barring of bidders found to engage in corrupt practices.

According to the draft Bill, there should not be any scope for price negotiations except in prescribed circumstances, with reasons to be recorded. Also there should not be any restriction on the number of bidders, other than on specified conditions.

Currently, there is no overarching legislation governing public procurement by the central government and central public sector enterprises and the General Financial Rules, 2005, govern procurements made by the Centre.

The draft Bill is based on the recommendations of Committee on Public Procurement headed by former bureaucrat Mr Vinod Dhall.

Published on February 22, 2012

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