Ministers can't clear purchases above Rs. 50 lakh

Discussion in 'Politics & Society' started by ejazr, Apr 16, 2012.

  1. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    Ministers can't clear purchases above Rs50 lakh - India - DNA

    Taking its battle against corruption a step further, the UPA government has decided to codify the procurement procedure, taking away the purchasing power of ministers, heads of departments and public sector undertakings, for anything above Rs50 lakh.

    The Union cabinet on Thursday approved the Public Procurement Bill 2012, for introduction in the current session of Parliament. Human resources development minister Kapil Sibal hailed the Bill for helping check corruption by providing greater accountability, transparency, probity and enforceability of a regulatory framework in the high-stake government purchases.

    The proposed law would create a statutory framework for public procurement envisaging a set of detailed guidelines, rules and model documents. It seeks to create a public procurement portal to provide complete transparency in all high-valued government purchases as also an independent mechanism of grievance redressal system, headed by a retired high court judge.

    The Bill provides to debar bidders found engaged in corrupt practices, and proposes a jail term of six months to five years for public servants found guilty of demanding or accepting bribes from those bidding for government contacts.

    The government expects the Bill will regulate purchases and also provide fair and equitable treatment to bidders, promoting competition, enhancing efficiency and economy, safeguarding integrity in the procurement process and enhancing public confidence in public procurement.
     
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  3. SADAKHUSH

    SADAKHUSH Senior Member Senior Member

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    A positive development given how much of tax payers money has been wasted to this day. I hope they can enforce it as well just having the laws on books without complete enforcement will be waste as well.
     
  4. amitkriit

    amitkriit Senior Member Senior Member

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    Now they will do it in another way: it is called "You scratch my back, I will scratch yours".
     
  5. SADAKHUSH

    SADAKHUSH Senior Member Senior Member

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    So anything under INR 50 Lakh is open to "Microghuskhori Ka Dhandha". Jai ho Bharat kay looteyro ki. The other option open to our creative politician will be to cut a large amount contract to under INR 50 lakh per project. I am sure they will find ways to stay corrupt in this life time. I hope they do not read my post and use my idea to get around the upper limit of INR 50 Lakh.
     
  6. devgupt

    devgupt Regular Member

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    It is still a welcome move
     
  7. Yusuf

    Yusuf GUARDIAN Administrator

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    Lol, it already happens.

    In PSUs, there is a purchase limit of 20,000/- or so IIRC. They keep playing within that limit. Anything above that has to be tendered.

    On the positive side of this discretionary powers is that work is done quickly. If tenders have to be raised for 5000 or 10,000 worth items then it will effect production an slow things down. Such purchases are done for all items that are urgently required.

    This 50 L limit is peanuts considering how large big projects are. With 50L you can barely make a stretch of a road. Anyone trying to make multiple orders of under 50L will get caught.
     

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