Any procurement activity to be carried out by any Government department/PSU needs
to be done through a tender/auction method which itself results into quite a sizeable
amount (billions of rupees). This has resulted into large scale corruption and also
cartel formation between the suppliers thus depriving the Government of billions
of rupees. At some point of time, it also results in compromising in the quality
of work that is executed.
To remove such discrepancies,
NPA/MDB has come out with a five point formula which is as follows:
- Publish all Open & Limited Tenders on website
- Publish all Tender Document on website
- Allow Supplier to download document for free
- Publish Corrigendum on Website
- Accept documents fees at time of bid submission form Supplier
The benefits of e-Procurement
are as follows:
- Free, Fair and Fearless participation of Vendors
- Cartel formation can be arrested
- Greater transparency in procurement
- Eliminates procurement cost difference between various government wings/corporates
- Achieve economy of scale by aggregation of requirement
- Better Response, Increased Visibility
- Vendors can participate anytime – on holidays
- Eliminates the limitation of distance
- Very cost effective compared to conventional tendering
- Shortens the procurement cycle drastically
- Lesser hassle of communication and administration
- Increased savings due to better competition and other miscellaneous like stationary,
publishing in newspapers, less manpower etc.
- e-Procurement has been adopted by many Government departments/Corporates as their
mode of procurement and they have saved billions of rupees.
|