With eyes on the Union Budget that is round the corner, hopes and expectations are also raised from the first parliament session of the year. Following the same sentiments, the first-ever National Procurement Policy likely to be introduced in the next session of Parliament needs to be sustainable, based on best international practices and have a clause of price variation to ensure its successful implementation.
“Public interest has to be supreme, much above private greed. We are living in a dynamic world and must take speedy decisions to promote meritocracy, discourage restrictive practices and ensure that price determination is done in a fair manner," said vigilance commissioner R. Sri Kumar.
Currently, the annual expenditure on public procurement by various government departments and public sector units is estimated around Rs 15 lakh crore. Therefore, the introduction of the bill is believed to ensure the honesty, transparency of the public procurement. Additionally, this would not only help savings of several thousands of crores of rupees every year but also improve the quality of goods and services acquired by public authorities.
At a conservative estimate, Rs 15 lakh crore is the annual expenditure on public procurement by various government departments and public sector units, said an official at a conference organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Meanwhile, the Public Procurement Bill 2011 aims to curb wasteful expenditure and promote modern management techniques like pay back period, discounted cash flow, net present value, internal rate of return, technical and market analysis.