E-Government Procurement Implementation: Necessity of National Procurement Law

Prabir Panda1, GP Sahu and Pramod Gupta

Motilal Nehru National Institute of Technology, Allahabad, India

Abstract
The benefits of e-procurement implementation for public procurement is a well research area. The adoption of
e-procurement results in cost savings to exchequer by increasing operational efficiency, transparency,
competition among bidders and organizational effectiveness through automation of manual processes. The
review of contemporary research literature brings out procurement process engineering, change management
and top management support as some of the critical success factors for e-procurement project implementation.
It is also well known that NeGP project was launched in 2006 with e-Procurement as integrated Mission Mode
Project. A recent review of the e-procurement implementation by DIT, Ministry of Commn & IT brought out that
the progress in this area has been dismal. Barring few states like Andhra Pradesh, Chhattisgarh etc, the project
has not taken off. This lack of progress (when seen in the light of rampant corruption in India) becomes a cause
of serious concern. In this backdrop we undertook study of various statues, rules and government order
governing public procurement in India. In order to develop better understanding of the research domain we
undertook template analysis of successful e-procurement implementation by State Governments of Andhra
Pradesh and Chhattisgarh. In addition, we interacted with some of the stakeholders to elicit their views on how
a legal framework could help in smoother and faster roll out of e-procurement projects in public sector. The
research methodology followed included analysis based on an elaborate study of various government policies
and guidelines and their impact. Fact findings are provided through journal articles, information hosted on
government portals, statues, rules, regulations and government resolutions relating to e-procurement and
government purchasing. The study concludes that since “Procurement” doesn’t figure in either State List or in
Concurrent List, therefore Indian Parliament can make law on the subject for the entire country. However, no
separate law governing public procurement has been enacted in India. Finally, the paper brings out broad
contours of a modal procurement law that would expedite the e-procurement implementation in India in an
optimal manner.

Keywords: public procurement, e-procurement, legal framework, procurement law, government orders.

1 Introduction
Clausen, Kraay and Nyiri (2009) in their report titled “Corruption and Confidence in Public Institutions
Evidence from a Global Survey” (undertaken on behalf of World Bank) bring out that in order to operate
effectively, public institutions must also inspire confidence in those they serve. The authors use data from the
Gallup World Poll, a unique and very large global household survey, to document a quantitatively large and
statistically significant negative correlation between corruption and confidence in public institutions. Therefore,
the necessity of adopting e-Procurement for public procurements becomes acute when seen in the light of
multiple incidences of possible fraud, corruption, bid rigging and collusion between suppliers being reported in
Media on regular basis. Various sting operations have also indicated that bureaucrats / politicians can influence
the procurements/award of contracts for their personal gains. This prevalent corruption in the country is also
indicated in “Global Corruption Report 2009” which places India at 85th out of 180 countries rated on
Corruption Perceptions Index.

The contemporary research which shed light on the state of affairs in India is summarized below:-

(a) India is ranked 51 out of 139 on “Global Competitive Index” due to red tapism and prevalent
nepotism and corruption (World Economic Forum, 2010).

1
Corresponding Author: (E-mail: [email protected], Telephone: +91 5322581258)

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 (b) India is ranked 119 in the recent United Nations‟ e-Gov Rankings due to poor performance in
implementation of e-government projects which includes e-procurement as a G2B service (UNPAN,
2010)

(c) A recent survey brought out that about 30% of Indian Union Budget is spent on provisioning
of goods / services (OECD, 2010). Therefore, any optimization of expenditure would have significant
impact on overall efficiency in government spending.

(d) A savings of upto 25% has been reported in the e-Government Procurement implementations
in India (Panda and Sahu, 2011, http://www.eprocurement.gov.in/).

(e) Research indicates that any e-Gov Project has 70% chances of failure (Gartner, 2000; DMR,
2003; Vaidya et al., 2004). This aspect holds good in case of India also as there have been very few
successful e-GP implementations in India. Some of them are GoAP, GoCG, IR, MCD, DGS&D,
MSTC, Karnataka, Kerala (NISG, 2010; CeG, DIT, 2011)

(f) NeGP was launched in 2006 to promote e-Gov within the country with e-GP as an Integrated
MMP. Not much progress has been made since then. Various Govt Orders on the subject issued during
2006-07 still remain unimplemented (DIT, 2011).

2. Research Questions
In the above background, this paper examines following research questions pertaining to implementation of e-
Procurement system for public procurements in Indian context:

(a) How is the public procurement regulated in India? Are there any laid down statutory
legislations, guidelines etc., governing them and are these policies uniformly applicable across various
procurement agencies namely Central Govt, State Govt, PSU etc.?

(b) What are tangible benefits of migrating public procurement system to e-Procurement?

(c) Review progress of e-Procurement implementation in India as a part of Integrated MMP of

National e-Government Plan.

(d) To study whether e-procurement implementation in India can be expedited and made effective
by necessary legislatory interventions? If yes, then what should be the contours of the legislation?

3. Public Procurement Process: An Indian Perspective

The funds are allocated to every Ministry / Department for meeting their plan and non-plan expenses by MOF as
approved by Parliament in Union Budget. The funds are allotted financial year wise (01 April to 31 March, next
year). The public funds so entrusted, are to be spent following a uniform, systematic, efficient and cost effective
procedure, in accordance with the relevant rules and regulations of the Government.

Procurement as a subject does not figure in Union List, State List, and the Concurrent List that govern
legislative functions in India. Therefore the Union Parliament has the exclusive power to make any laws on the
subject of procurement. However, Parliament has not enacted any specific legislation on the subject. Therefore,
in the absence of dedicated law governing public procurement, the procurement functions are affected in terms
of detailed rules and instructions contained in General Financial Rules (GFR), 2005 and Delegation of
Financial Powers Rules (DFPR) 1978 (as amended from time to time) issued by MOF. Further, the Indian
Contract Act, 1872 and Sale of Goods Act 1930 also govern contract of sale/purchase of goods by the
Government. They all regulate public procurement system. Additionally, to encourage development of
Handloom Sector, Cottage and Small Scale Industries and Central Public Sector Undertakings, the government
provides various facilities to them from time to time. Further, the Central Vigilance Commission has
recommended various steps to increase transparency in public buying. These aspects are also kept in view while
making public procurement (Manual on Policies and Procedures for Purchase of Goods, Para 1.2). Rule 135 of
GFR 2005 permits Ministries and departments to formulate detailed procurement procedures which are to be in

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conformity with GFR and DFPR. In pursuance of the rule, major Ministries and departments have issued
detailed purchase procedures for their internal use such as MoD (Defence Procurement Procedure 2008,
Defence Procurement Manual 2009), Director General Supplies and Disposal (DGS&D Manual), Railways,
Public works etc. The basic guidelines contained in GFR and DFPR are also followed by State government
though some state government have enacted statue dealing with public procurement like State of Karnataka.

The procurement process across various ministries and departments of central and state governments is
regulated using the basic guiding principles of public procurement. OM No. 8(3)-E.II (A) 0-02 states that these
principles, inter alia, include the following:

(a) Maximizing economy, efficiency and effectiveness in procurement. This would mean
purchasing of goods/services of required specifications for the intended purpose in a required time
frame at the most economical price.

(b) Fairness, i.e. providing fair and equitable treatment to all prospective suppliers / bidders.

(c) Competitions among suppliers for supply of goods/services to be procured so that efficiency
can be rewarded and procurement can be made at the most economical price.

(d) Achieving transparency in the procedures relating to procurement.

The underlining factors for similarity in public procurement principles emanate from:

(a) Various central statues such as Competitions Act 2002, Government Accounting Rules
1990, Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971
which are equally applicable to state governments.

(b) International guidelines such as UNCITRAL Model of Law of Procurement, EU guidelines,

World Bank guidelines, WTO agreement on government procurements etc. which are to be followed in
case of projects funded by these agencies.

(c) All e-Procurement solutions have to be technically vetted by DIT thereby they all must pass
the same benchmark (directed by CVC vide circular NO. 23/06/010 dated 23 Jun 2010).

4. Difference between Government and Corporate Procurement.

While procurement as a function exists both in public and corporate sectors, the considerations and the approach
for the procurement in these two differs significantly. Purchasing and procurement have more of a strategic
character in the private sector than in the public sector. This is primarily due to:

(a) Managers in private firms are more involved in major organizational activities than the public
procurement managers. The procurement managers in private sector are normally involved in all major
organization activities like planning, formation of strategic partnership etc unlike govt sector where
these roles are vested with different functionaries (Johnson, Leenders & McCue, 2003).

(b) The major procurement decision may be made in the private sector on a financial basis alone
(Smeltzer, 1998) without regard to other parameters which weigh equally in public procurements; and

(c) Non monetary factors such as equity, competition, transparency limit the discretion of public
procurement officials, thus inhibiting their abilities to operate at strategic levels (Matthews, 2005).

5. e-Procurement: Cost effective, efficient and corruption free procurement

E procurement has been classified and defined by many authors. E-procurement is an “internet-based purchasing
system that offers electronic purchase, ordering processing and enhanced administrative functions to buyers,
suppliers (Panayiotou, Tatsiopoulos, & Gayialis, 2004) and management” (Atkinson, 2007). In basic terms, e-
procurement can be defined as “using Internet technology in the purchasing process” (Boer, Harink, &
Heijboer, 2002). Some of the examples are e-MRO, web-based ERP, e-Sourcing, e-Tendering, e-Reverse
Auctioning, e-Informing.

With web enabling one of the critical areas of their business, government departments can access new strategic
partners, uncover new suppliers and streamline purchasing processes while simultaneously lowering costs.
Adopting an e-procurement solution could save on the money, time and labour that are normally wasted on
sieving through reams of paper. The opportunity to conduct online transactions with the government reduces red
tape apart from simplifying regulatory processes.

Public procurement specifically revenue procurement is undertaken in decentralized mode within the powers
delegated to the departments in terms of DFPR. In some cases the procuring government agency deals with a
couple of thousand suppliers and an average of five to six contracts per supplier. The major challenge to
government procurement remains in providing a level playing field between competitors. It is often achieved by
use of the sealed competitive bidding and awarding bids to the lowest bidder meeting specification (in case of
purchase) or highest bidder (in case of auction). It is therefore required that e-procurement solution brings in
quantum improvement in the procurement cycle without upsetting the government policies and procedures.
Various researches underlining benefits of implementing e-procurement is tabulated below:

Table 1: Benefits of adopting e-procurement (Source: Kailannan et al., 2009)

Benefits of e-procurement Literature

(a) Reduces procurement cost Hiller and Belanger (2001), Neef (2001), Boer et.al
(2002), Davila et al. (2003), Moon (2003), Panaiotou et al.
(2004), Gansler et al. (2003), Croom and Brandon-Jones
(2005), Barbieri and Zanoni (2005), Vaidya et al. (2006),
Gil-Garcia (2006), Zaharah (2007), Maniam et al (2007)
(b) Electronic transactions offer improved Henriksen and Mahnke (2005), Callender and Schapper
efficiency for both the supplier and (2003), Callender and Matthews (2002)
government (procurement office)
(c) Increases accountability and transparency Jones (2002), Henriksen and Mahnke (2005)
(d) Improves G2B collaborative relationships Dyer (2000), Tang et al. (2001)
(e) Improves the internal service and Stanley and Wisner (2001), Croom and Brandon-Jones
purchasing function (2005)
(f) Efficiency gains and price reductions Boer et al. (2002), Panayiotou et al.(2004)
(g) Increases customer satisfaction Thai and Grimm (2000)

E-Procurement is performed with a software application that includes features for supplier management and
complex auctions. The new generation of E-Procurement is now on-demand or a software-as-a-service.

6. Review of e-Procurement Implementation in India

The status and progress of the e-Procurement MMP was reviewed in the Apex Committee Meeting chaired by
the Cabinet Secretary, held on 29th Jun 2010, wherein it was felt that there is an urgent need to accelerate the
implementation of the e-Procurement MMP through regulatory interventions in the form of directions from the
Ministry of Finance by laying down thresholds and timelines for mandatory adoption of e-Procurement system
for government procurements. Therefore the e-GP MMP strategy has been further refined on the Directions of
the Apex Committee involving a three pronged implementation approach, wherein, all Ministries/Departments/
Organizations/State Governments will have the choice to either (DIT, 2011):

(a) Use the e-Procurement solution developed by NIC (GePNIC). NIC has developed its own
e-Procurement software solution namely GePNIC to cater to the procurement/tendering requirements
of the Government Departments and Organizations. The functional model developed by NIC is generic
in nature and covers activities relating to e-tendering but not those pertaining to pre-tendering or post
award of tender. The GePNIC solution has been implemented by NIC in 7 States (Haryana, Tamil
Nadu, Uttar Pradesh, Orissa, West Bengal, Punjab and Himachal Pradesh) and 3 other Government
organizations, for the past two and half years.
 (b) Use DGS&D’s e-Procurement Portal for procurement of common use items through Rate
Contracts. DGS&D is also enhancing the system to make available an end to end e-Procurement
platform which will be available to other Ministries/Departments/Organizations/State Governments on
their requests. DGS&D has developed an end-to-end e-Procurement Portal for procurement of common
user items through Rate Contracts. The e-Tendering modules were developed in PPP mode through a
Service Provider, the contract for which has since expired in March 2010. The remaining modules were
developed with the assistance of NIC. DGS&D is in the process of empanelling Application Service
Providers (ASPs) to make available an e-Procurement platform which can be made use of by willing
Central Ministries /State Government/ PSUs. The writ petition (WP(C) No.9342/2009) filed in this
matter also stands disposed by the Hon‟ble Delhi High Court vide its judgment dated 08/09/2010.
While disposing the petition, the court has noted the submission made by the ASG on behalf of the
Government that it will not impose its e-procurement solution to any other Ministry of Central/State
and other Govt. agencies, PSUs etc. and other PSUs/Departments/Ministries, shall have the choice to
devise their own e-procurement solutions.

(c) Use any other third party e-Procurement solution preferably on a PPP model as has been
done by Karnataka and Andhra Pradesh subject to certification by DIT regarding security and
transparency.

7. Critical Success Factors for e-Procurement Implementation

Rockart (1982) first used critical success factors (CSF) in the context of information systems and project
management. A number of researches have been subsequently reported in this field. OGC (2007) believes that
CSFs are limited in the number of areas that, if fully addressed, would ensure the successful completion of the
programme. Identifying and communicating the CSFs ensures that everyone in the programme team is focused.
Pinto and Slevin (1987) defined a model of a project implementation success as S = ƒ (x1, x2 ,......,xn) where S
is project success and xi the critical success factor i. Consequently, a large number of studies have been
conducted to identify critical success factors for e-procurement implementation both for implementation by
corporate sector as well as for government entities. The number of CSFs identified and their attendant
nomenclature in these studies vary. We present below a well accepted modal on e-procurement implementation.
The CSF model also augers well for identification of areas of concern and thereafter suggesting their remedies:

Figure 1: CSF for E-Procurement Projects (Source: Vaidya et. al, 2006)
8. Discussions and Findings
The importance of enabling legal framework has been underlined by various researchers. We cite some of the
important ones below.

A framework for evaluating a developing country‟s public procurement system has been devised by the
Development Assistance Committee of the Organisation for Economic Cooperation and Development (OECD),
together with the World Bank. The aim has been to develop an integrated set of tools and good practices to
improve procurement systems and the outcomes they produce and to assist in the periodical assessments of the
domestic legislation. Various benchmarks establish whether the elements of a well- functioning public
procurement system are in place. The benchmarks are based on four pillars. The pillar I of the OECD-DAC
assessment methodology assesses the existence, availability, quality and use of the legal and regulatory
framework from the highest level (Act and Regulations) down to the more detailed operational procedures,
guidelines, model tender documents, and standard conditions of contract.

The issues in application of legacy laws in net-centric operations have been brought out by Pastor, Gautam,
Gaur & Singh (2010). They brought out that the new dispensation of e-governance requires new set of laws.
Physical laws have limitations because they are uni-dimensional in application and meant to govern the physical
world, which is static, defined and incremental, whereas e-governance represents new form of governance,
which is dynamic, and exponential. These are technology intensive laws to control and safeguard electronic
transactions in the electronic medium. They underline that the success of e-government initiatives and processes
are highly dependent on government‟s role in ensuring a proper legal framework for their operation. The
introduction and uptake of e-government services and processes will remain minimal without a legal
equivalence between digital and paper processes.

OECD governments are aware of the need for a framework to provide for enforceable electronic transactions,
both in the e-government sphere and for electronic commerce, and have taken action. 36 Clearly, e-government
will affect the existing legal framework. But to what extent, and does it necessarily implies that applicable rules
have to be changed because they are not fi t for the new technological developments in the public sector? A
glance at the country reports shows that the most persistent legal issues that arise in relation to e-government
are: privacy, the absence of paper-based documents and signatures, confidentiality and reliability and, finally,
access to and the reuse of public sector information. Several of these issues resemble those faced in the e-
commerce domain (e.g. security, e-signatures, and authentication). It could thus be argued that in dealing with
them, an approach from one single „online‟ perspective would be the obvious route to take.

Jha, Srivastava, Bokad and Kuchar (2010) brought out there is an urgent need to take measures to dissolve
compartmentalization of e-governance practices so that it serves its purpose in true sense. They recommend
evolving uniform technology supported by uniform legal framework and procedural format and a unified
approach. Akampurira, Root, & Shakantu (2009) in their studies brought out that legal and regulatory
framework is considered to be conducive for private sector participation while corruption has been suggested as
a significant constraint to the development and implementation of public private partnerships. Somasundaram,
& Damsgaard (2005) brought out that a part of the government has to take proactive efforts for encouraging the
diffusion of e-procurement in the public sector.

The importance of WTO Government Procurement Agreement (GPA) has been underlined by Anderson
(2007). He has brought out that the GPA is broadly consistent with and reinforces the values and objectives of
other important international instruments and work in this area such as the United Nations Convention Against
Corruption, UNCITRAL Model Law on Procurement, relevant guidelines of the World Bank and the OECD's
work on prevention of corruption. He postulated that the need to have a clear, simple and efficient procurement
procedure would gain importance over time, with the increasing focus on good governance internationally and
the growing recognition of the contribution of efficient and competitive procurement regimes to development
and growth.

Cimander, Hansen and Kubicek (2009) studied the problems of cross-border e-procurement within the
European Union. They bring out that due to lacking technical interoperability and legal harmonisation in
particular concerning the use of e-signatures within EU countries is hampering cross-border e-procurement. In
fact a number of countries have implemented national procurement law like Uganda (Public Procurement and
Disposal of Public Assets Act 2003), Paraguay (Public Procurement Act [2051] 2003) to name a few.
After critical analysis of prevalent socio-politico scenario in India which affects implementation of e-
procurement solutions in India, we conclude that implementation of a national procurement act would enable
faster and smoother roll out of e-procurement solution for public purchases:

CSF Status How Central Procurement Act

would be beneficial
(a) Security and To ensure interoperability among e-Gov The institutional mechanisms set up by
Authentication applications, GoI has setup an institutional GoI would have their specific role and
(b) Technological mechanism for formulation of standards authority be legally backed. They
Standards (http://www.egovstandards.gov.in/). would have authority to enforce
standards even in case of PPP projects.
In addition, DIT has established “Centre
for e-Governance (CeG)” which would act The standardization would ensure
as a showcasing platform for various e- interoperability of various e-
Governance applications and technologies procurement solutions.
being deployed across the country
including demonstration of tested and
futuristic technology solutions
(http://mit.gov.in/). DIT issues various
standards for ensuring security of e-gov
applications.

In addition, each state/govt department

specifies its own set of standards for e-
procurement implementation. In addition,
various PPP partners like M/s Wipro, C1
India etc have their own framework for e-
GP projects.

(c) System The respective state/govt department takes The roles and responsibility of
Integration care of these issues by way of notification / implementation agency (i.e.
(d) Project policy directive. Normally, a government NIC/DGS&D/PPP Partner) and
Management agency is nominated for undertaking the e- Sponsoring dept (Govt Agency) would
procurement implementation. This be clearly and inviolably laid down.
(e) User Uptake and independent agency (like CHiPS in case of
Training GoCG and APTS in case of GoAP) is
(f) Top responsible for formulation of project Since the roles and responsibilities
Management requirement, floating of tenders for e- would be covered in detail in the Act,
Support procurement implementation, inter – the attendant criminal liability for the
departmental coordination, implementation lapses would ensure all stakeholders
of BPR through empowered committee take their job seriously.
(g) Supplier and also would act as interface between Since by way of legislation, the central
Adoption vendor and government agencies. government could make registration of
suppliers a centrally facilitated activity.
This would preclude entry barriers as
well would ensure that each supplier is
required to complete the formality of
registration only once. This
streamlining of procedure and attend
ease would definitely improve supplier
uptake of e-procurement solutions.
(h) Change Since the e-procurement would be
Management made mandatory by law, this would
minimize resistance to change. The act
would ensure that adoption of e-
procurement solutions is not stalled
due ulterior motives of some
stakeholders.
(j) Procurement The changes in procurement processes
Process Re- hitherto undertaken by state
 engineering governments by way issue of Govt
Orders, would get streamlined. Issues
like EMD deposit, Payment gateway
etc could be solved in a go thereby
eliminating avoidable delays
encountered in each e-procurement
system implementation.

(k) Performance This normally forms part of the project An independent body could be
Measurement evaluation. The PPP partner is given a established to audit the performance
target to be met with specific timelines. and utilization of e-procurement
solutions. Alternatively, C&AG could
be tasked to audit these systems and
render status report to the parliament.

(l) e-Procurement Normally, Public Private Partnership The roles, responsibilities and
Implementation model is followed. compensation modal for PPP partner
Strategy could be well defined in the Act. This
would bring in much needed
transparency in the outsourced
deployment of e-procurement
solutions. This would also provide a
level playing field to all prospective
PPP partners by way of eliminating
subjectivity in the whole process of
outsourcing.

The “National (e)Procurement Act” should aim to create a single, modern legal framework for all procurement
processes conducted by government entities through e-procurement portal. The Act should streamline and
simplify procurement laws. It should additionally lay down a cut-off date by which the procurement processes
should be migrated to online portal. The law should include detailed procedural rules or:

(a) Centralised registration of suppliers/vendors, process for verification of their credentials,

issue of digital signature etc. The payment should be mandatorily through national payment
gateway operated by RBI. This would make payment transparent and the income of the suppliers could
be taxed appropriately at source. The grounds and process of blacklisting a supplier should also be laid
down in the Act.

(b) The technological and security framework to be used for development of e-procurement
systems should be clearly laid down. The interfaces for lateral, upward and downward flow of
information from the individual portals to national portals should be specified in the form of Service
Oriented Architecture. A national procurement repository should be established under the aegis of NIC
which would receive procurement information from various e-procurement portals and make the data
available for data mining functions. This database should be made available (through appropriate
interfaces) to all e-procurement systems for querying for last purchase price, supplier details for a
particular item etc.

(c) The reformed process for implementation in e-procurement solutions for various stages
like pre-tender, advertising and public display of bid opportunities, notices of best evaluated bidder and
contract award should be clearly laid down in the Act. The procedure for bid challenge supported by an
enforcement system that allows dissatisfied suppliers to seek administrative review and provides for
suspension of providers for offences and disciplinary measures to be taken against public officers who
commit malpractices.

(d) The Act should define the role and functions of each agency related with public
expenditure like:
(i) The Bureau of Indian Standards could be suitably involved in certifying the products
for government purchases. Similarly the role of inspecting agency like DGAQA should be
clearly defined.
 (ii) The role and responsibility of Ministry of Environment and Forests could be involved
in environmental clearance for the products to be purchased by Government entitites.

(iii) The role of DGS&D in finalization of rate contracted items. More and more number
of items could be brought within the ambit of rate contracts by virtue of data regarding
consumption patterns being available through national procurement repository.

(iv) Central Vigilance Commission could look after bid-challenge in modified scheme

(v) Competitions Commission could investigate suspected cases of cartelization in a deal

in terms of Competitions Act 2002.

(vi) Comptroller and Auditor General could look after post audit and invoke penal
provisions pertaining to transparency declaration of a deal in case kickbacks are uncovered
during post audit.

(vii) Police / CBI should take to initiate legal proceedings against corrupt officials without
requiring prior permission of central/state government. The Lokpal bill as and when comes
through should look into the corruptions in higher echelons.

9. Concluding Remarks
The challenges like BPR, resistance to change, ulterior motives has stalled the progress of e-procurement
implementation in India. The lack of an enabling national legal procurement law has allowed interpretation o
government policies by corrupt officials for vitiating public procurement process. The number cases reported by
media regarding Commonwealth games, 2G spectrum allocation underline the ease with which corrupt people
can bend the rules to benefit themselves at the cost of national progress and pride. These issues could be
addressed to a large extent by promulgating a central statue standardizing procurement process across the
country. The statue could cement the roles and responsibilities of various agencies and enabling acts like CVC
Act, Prevention of Corruption Act, Competitions Act etc. The availability of such an act would also facilitate
standardization of e-procurement solutions to be implemented by various government entities and would enable
data sharing. The National e-Procurement Act should incorporate salient provisions of WTO GPA, OECD EU
and World Bank guidelines.

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