India Govt approves a Public Procurement Bill for transparency and to check corruption

New Delhi, Apr 12 (PTI) Aiming to bring in transparency and deal with the issue of corruption in state purchases, the Indian government today approved a Bill that seeks to regulate public procurement of above Rupees 5.0 million and provide fair treatment to bidders. "The Bill is exceptionally important as it is part of our commitment to deal with the issue of corruption. Part of our commitment is to ensure that in government functioning, there is both accountability and transparency," HRD and Telecom Minister Kapil Sibal said after a Cabinet meeting. The Public Procurement Bill, 2012, seeks to codify fundamental principles in the government procurement and maximise competition, he told reporters. The Bill is likely to be introduced in the ongoing Budget session of Parliament. The Bill seeks to regulate procurement by the Indian government and India government owned public sector enterprises with the objectives of "ensuring transparency, accountability and probity in the procurement process". According to an official release, the Bill also seeks to ensure fair and equitable treatment for bidders, promoting competition, enhancing efficiency and economy, safeguarding integrity in the procurement process and "enhancing public confidence in public procurement". Currently, there is no overarching legislation governing public procurement in India. The General Financial Rules, 2005, govern procurements made by the central government. The Procurement Bill, which will be sent to a standing committee after introduction in Parliament, also provides a "strong framework" for transparency and accountability through a public procurement portal and a grievance redressal system. An independent mechanism, under the chairmanship of a retired High Court Judge, would review grievances, the statement said. The Bill is based on recommendations of a Committee on Public Procurement headed by former bureaucrat Vinod Dhall which were accepted by a Group of Ministers (GoM), to tackle corruption headed by Finance Minister Pranab Mukherjee which then sent the bill for approval to the Union Cabinet. Sources said the Bill proposes a jail term ranging from six months to five years for public servants found guilty of demanding and accepting bribes from bidders of government contracts. PTI