Thursday 5 July 2012

A Bill for progress

When the monsoon is delayed (as it is now), when there are power cuts and when there is water shortage, we are transferred to pre-independence India—65 years back in time. It is at these times that we enumerate our governmental achievements. We have air-conditioners, coolers and fridges and electricity to run them with. We have air-conditioned metro rail and air-conditioned city buses; and fine roads to travel upon.Urban India has its comforts. We have now Internet and variety in T.V. and radio. These have been possible because of efficient functioning of the government.To keep India on the path of progress, we have to improve the functioning of our government organizations first. We have now Public Procurement Bill 2012.General Financial Bill 2005, for public procurement did not work.For procurement and contracts, we have codified procedures.Now the private sector is under government's scrutiny.Many government ministries like railways and defence urgently need rules.There will be three kinds --open bidding, limited competitive bidding, and two stage bidding (choosing L1 category) L 1 category means that which is most suitable, which is technically responsive and commercially acceptable will be selected. Other reasons/categories like "has supplied earlier" or "most experienced" will not be acceptable/considered for bidding. With this we have greater transparency and accountability. For all deals above 50 lakhs, we have prescribed mode of procurement for government organisations and companies(with 50% government's stake).If rules of procurement are infringed, then penalty could be five years jail plus a fine. No lobbying will be tolerated in government procurement.Therefore misuse of information is excluded. Only registered parties can participate in the bidding process, and they need pre-qualifying documents.Portal will give details of procurement and documentation will be done on line. If influence is exercised the fine would be ten percent of the deal proposed. Even debarring is possible or the will be cancellation of participation in the bid.That is would deter bribe givers. There is possibility of recovery of payment with interest, if anything goes wrong. This bill would stop rigging; and malpractices in procurement will be stopped. Bribes will be excluded effectively. This would stop informal contacts with the bidders. There would be a two stage bidding, which would counter check deals. There would be equitable chance for all the bidders, and it would encourage competitiveness. There is creation of redressal committee to listen to grievances.If a party wants it can take its grievances to high court,it can.There is a clause which deters trivial disputes.There are some setbacks in the bill as it takes into account the matters in the category of checks and balances only; new exigencies will not be considered. There is great deal of guidance which has to be given to the government departments on the procedures in this; within the departments, there is lack of professionalism to incorporate new procedures.And there are also several instances when contracts between government and private infrastructure builders which have not worked out effectively. For instance, in making the highways, National Highway Authority of India had to face problems as there was a defect in the contract leading to disputes and projects were affected. How to check such cases? All deals and contracts do not fall in exact categories as envisaged. There is need for improvement. How to categorise international treaties and MOUs?How to protect domestic markets? Soon appropriate alterations will be made. E-procurement, e-tendering e-bidding for e procurement will bring big results in India. With this we are making  better e-governance and greater progress for the people of India.

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