Analyse the concerns regarding Public procurement and steps taken by the Government to improve the system of procurement.

Public procurement is the purchase by governments and state-owned enterprises of goods, services and works. There are many inequities and illegalities in public procurement. All of them must be tackled to improve the system.
�Concerns:

  • There are many Charges of corruption over the stakeholders involved
  • There are many regulations, guidelines and rules
  • State public procurement is regulated by a State Act only in five States: Tamil Nadu, Karnataka, Rajasthan, Andhra Pradesh and Assam
  • The grievance redress mechanisms provided are not effective
  • The procuring officer not given all the powers related to the work. There is always an interaction of the Government
  • There are many tenders which are unconstitutional and illegal so a number of cases have been take up in courts

Steps taken:�

  • Establishment of GeM: It is an online procurement platform. MSMEs, DPIIT recognized startups and other private companies can register on GeM as sellers and sell their products and services directly to government entities
  • Public Procurement Policy for Micro and Small Enterprises (MSME) order 2012: It mandated Every Central Ministry/Department/PSU shall set an annual goal for procurement from the MSE sector at the beginning of the year
  • Government has issued Public Procurement (Preference to Make in India), Order 2017: The purchase preference shall be given to local suppliers in all procurements. The minimum local content shall ordinarily be 50%. The margin of purchase preference shall be 20%

Public procurement is a one of the pillars of services delivery for governments. There is need to well design the procurement system.
 

Originally written on January 19, 2023 and last modified on October 27, 2024.

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