GOVERNMENT OF INDIA
Ministry of Personnel, Public Grievances and Pensions
(DEPARTMENT OF PERSONNEL AND TRAINING)

RAJYA SABHA
UNSTARRED QUESTION N0.995
(T0 BE ANSWERED ON 22.03.2012)
Committee to Ensure Transparency Efficiencies and Effectiveness

995. SHRI RAJEEV CHANDRASEKHAR:

Will the PRIME MINISTER be pleased to state:-

 a)      Whether it is a fact that a Committee has been constituted by a Group of Ministers (GOM) to suggest measures necessary for ensuring full transparency and enhancing efficiency and effectiveness in public procurement;

b)      If so, the details thereof;

c)      The number of sittings held by the Committee since its constitution with details of each sitting and the outcome thereof; and

d)      The suggestions given by the Committee to Government so far and action taken by Government thereon?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND
MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE
(SHRI V. NARAYANASAMY)

(a) & (b): The Government constituted a Group of Ministers (GOM) on January 6, 2011 to consider measures that can be taken by the Government to tackle corruption. One of the terms of reference of the GoM was to consider and advise on - “Ensuring full transparency in public procurement and contracts, including enunciation of public procurement standards and a public procurement policy”.

                 The Group of Ministers, in its meeting held on 21“ January, 2011, decided, inter alia,  to constitute a Committee on Public Procurement to look into various issues having an impact on public procurement policy, standards and procedures. Accordingly, the Committee was Set up on 31^st January, 2011 with the following Terms of Reference (TOR):-

1. to suggest measures necessary to ensure full transparency in Public Procurement and Contracts including enunciation of Public Procurement Standards and Public Procurement Policy, keeping in view the existing legal and regulatory framework and rules and procedures applicable for Public Procurement and recent initiatives taken in this regard;

1. to suggest legal, institutional and systemic measures necessary to strengthen Public Procurement practices so as to clearly demarcate the powers and responsibilities of various authorities; and

1. to suggest best domestic and international practices which can be adopted to promote transparency and enhance efficiency and economy in procurement including measures necessary for fair and equitable treatment of suppliers, promotion of competition as well as ethics and probity in Public Procurement;

The Composition of the Committee was as follows:-

 (c):  The Committee on Public Procurement under the Chairmanship of Shri Vinod Dhall held 15 meetings. However, no separate record of discussions for each meeting was maintained. In the last meeting of the COPP held on 9.6.2011, the Committee finalized the Report of COPP and the same was submitted to the Government on 13^th June, 2011.

(d): The major recommendations of the COPP included enactment of a Public Procurement Act to regulate public procurement; creation of a dedicated institutional framework preferably as the Department of Public Procurement under the Ministry of Finance; and setting up a Public Procurement Portal.

          The Report of the COPP was considered by the GOM in its meeting held on 16^th June, 2011. The GOM directed that the Report may be referred to a Committee of Secretaries (CoS) to study the Report and make recommendations. The CoS considered the issues in its meetings held on 14^th July, 2011 and 8^th August, 2011 and made certain recommendations. The GOM, in its meeting held on 6^th September 2011, inter alia, accepted the recommendations made by CoS with certain modifications.

As far as enactment of an Act is concerned, a Bill in this regard is to be introduced in the Parliament during its current session. Further, a Public Procurement Division has been set up in Department of Expenditure as part of creation of a dedicated institutional framework. A portal called the Central Public Procurement Portal has been set up where all Ministries/Departments of the Central Government, their attached and subordinate offices and CPSEs are required to publish their tender enquiries etc.