Got may save 5% through e-procurement

The central government is expected to save at least 5 per cent through electronic procurement (e-procurement) process that came into effect in the beginning of this month.

"Our estimate is that through e-procurement, the central government would save 5 per cent of the total procurement done by various stores," an official of Director General of Supplies and Disposals (DGS&D). He added this would quicken the tendering processes.

Another significant gain of e-procurement is that it will limit the influence of "tender mafia", which does not allow smaller players to submit their bids for road and railway projects.

In 2005-06, the DGS&D had procured goods worth Rs 4,000 crore for various department and ministries and the allotted rate contracts worth Rs 6,000 crore, amounting to the total procurement of Rs 10,000 crore. While, goods worth Rs 3,500 crore were procured in 2004-05.

At the state level, Andhra Pradesh procurement transaction on the e-procurement platform have crossed Rs 40,000 crore in 2004-06. The government has saved over Rs 2,500 crore on procurements through this platform.