The fair trade regulator has been working on ways to curb anti-competitive practices across sectors in the marketplace, and public procurement is a key area as it accounts for around 20 per cent of the country's gross domestic product (GDP).
Speaking at a conference on public procurement and competition law in New Delhi, he said the tool would have capabilities to scrutinise tenders based on several parameters and check for any anti-competitive aspect, he added.
Generally, cartel refers to entities coming together in an effort to manipulate prices.
According to him,the procurement mechanism adopted by most departments are not designed keeping in mind the importance of competition in ensuring "optimum price discovery" through competitive bidding.
Clamping down on anti-competitive practices in public procurement, the watchdog has passed orders against entities indulging in such practices in certain cases.
Observing that effective competition and public procurement are two sides of the same coin, Mital said, adding that "free, fair and effective" procurement system would help in reducing costs.
He added that 20 per cent of the country's $2.6 trillion economy would amount to around Rs 28 trillion.