New department to monitor purchase procedures

As public procurement is perceived to be stoking corruption, an official panel has suggested a separate department to frame policies and standards on these purchases, but advised against any actual procurement by this centralised agency.

The committee, chaired by Vinod Dhall, former chief of the Competition Commission of India and formed to examine issues involving public procurement policy, standards and procedures, has also recommended enacting a law on public pocurements, to infuse greater transparency and standards in these purchases.

The 11-member body has finalised the recommendations, with three dissenting notes. However, there is unanimity in creation of a separate department for public procurement.

It has suggested this department work under the finance ministry, as is the case in some advanced countries. The proposed department would promote competition, transparency and fairness in all procurements, besides maintaining a database.

It would devise a framework for public procurement, formulate a comprehensive public procurement policy for public sector undertakings and other government departments and ministries, establish a system of grievance redressal and standardise procedures. It will also issue an annual report on public procurements in government agencies.

The committee, however, warned that the creation of a separate department of public procurement should not be taken as a recommendation for centralisation of procurement or interference with the existing delegation of powers to various departments and organisations.

“The department won’t undertake any procurement for or on behalf of any other ministry or department,” the committee said. Instead, this should act as a reference department for all procurement matters.