A new era in public procurement

The phenomenon of "irrational bidding" exists where the Indian private sector has not distinguished itself in the past

On October 29, the Department of Expenditure in the Ministry of Finance, issued a notification on the “General Instructions on Procurement and Project Management.” Unlike many recent government announcements on reforms, this was an uncharacteristic understatement, as the fresh stipulations have indeed attempted to address some serious lacunae persisting for decades in public procurement. 

At a general level, the 22-page note sets out a plethora of desirable actions in government purchases of works contracts and services. But what would surely draw a cheer from the private sector is the tough stance taken on delayed payments. It mandates that “payments of