Public Procurement: Pending applications should be considered soon, instructions for recommendation in 30 days

Public Procurement: In view of the large number of pending applications related to public procurement, the government is now preparing to dispose of it expeditiously. In this sequence, the Standing Committee to review the implementation of the Public Procurement Order under the chairmanship of the Secretary, Department for Promotion of Industry and Internal Trade (DPIIT) held a meeting recently. The committee has asked the nodal ministries to give recommendations within 30 days of receiving applications for registration of bidders from border countries.

The government had received a total of 775 applications but 506 applications were incomplete about which the applicants were informed. Out of 269 completely filled applications, only 17 units were approved for registration and 148 were rejected. 104 applications are pending with the nodal ministries or the National Security Council Secretariat, Ministry of Home and External Affairs.

The minutes of the recent review meeting of the Standing Committee, accessed by Business Standard, read, ‘The Standing Committee directs all concerned Ministries/Departments to grant registration within 30 days for further processing of the application or give its clear recommendation in this regard. Can give instructions. The Standing Committee can also direct the concerned ministries/departments to give their recommendations on the pending applications expeditiously.

The Department of Expenditure’s February 2023 notification had said that any bidder from a country bordering India (having a land border with India) would be eligible to bid in any public procurement. This includes work related to goods, services or contract projects etc. However, such bidder will have to be registered with the Registration Committee of DPIIT. This rule also applies to Indian bidders who have entered into a specific technology transfer agreement with a company from the border country.

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This amendment to the Public Procurement Order was made in line with the 2020 press note, under which government approval was mandatory for investments from border countries like China.

Ajay Dua, former Industry Secretary in the Ministry of Commerce and Industry, said that this is not an instruction of the Standing Committee but a request. “The 30-day deadline should also be applicable to the ministries of home and external affairs as security clearance takes a lot of time,” he said. Chinese companies supply goods, services and other work at competitive prices, which will also help the government reduce costs.

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