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Government Procurement

Securing the future of e-procurement in India

By Debeshi Gooptu Bakshi | 12 September 2011

With the Indian government emphasising the need for greater transparency in public procurement, streamlining processes through a centralised e-procurement system has become imperative. In an interview with FutureGov, Viresh Oberoi, Managing Director, mjunction Services Limited, explains how such a platform, when implemented, will increase competitiveness, transparency, efficiency and stop leakages.

The e-commerce company, a joint venture between public sector unit Steel Authority of India (SAIL) and private player Tata Steel, has recently implemented an e-procurement solution for the Ordnance Factory Board (OFB). The OFB, functioning under India’s Ministry of Defence, is engaged in production of arms, ammunition and equipment for civilian as well as military applications.

In India’s National e-Governance Plan (NeGP), e-procurement is identified as one of the eight Integrated Mission Mode Projects (MMP). Through e-procurement, a traceable electronic record of government transactions is maintained online. An end-to-end e-procurement system is made up of the following modules: supplier registration, indent management, e-tendering, catalogue management, contract management, e-auction, e-payment, accounting, and management information systems (MIS). Most government agencies in India have begun implementing certain modules of e-procurement such as e-tendering, e-auctions and contract management.

According to Oberoi, e-tendering, or the traditional process of tendering in an electronic form, ensures transparency, accountability, reliability and responsiveness in all government procurement activities. This is critical considering the large number of vendors on the government databases. The e-tendering solution that the Ordinance Factory Board has implemented, for instance, will cater to over 20,000 vendors and service over 1 lakh vendors each year.

State-owned organisations such as Steel Authority of India (SAIL), Hindustan Copper Limited, Mangalore Refinery and Petrochemicals Ltd, Central Coalfields Limited, West Bengal State Electricity Distribution Company Limited and Bharat Heavy Electricals (BHEL) have implemented e-procurement solutions to increase efficiency of processes.

“Each organisation has unique requirements and requires customised solutions. The e-procurement solution at OFB, for instance, will help the division in standardising their purchases, shortening procurement cycle time, reducing inventory costs and other recurring costs and in increasing transparency and vendor participation, apart from other associated automation benefits, which the solution encompasses,” says Oberoi.

“E-commerce is all about bringing in transparency and efficiency into the buying and selling process,” sums up Oberoi. “This has been proved time and again wherever e-selling, e-sourcing, e-finance and e-knowledge services have been introduced, be it for private or government clients.

With solutions such as e-procurement, government agencies and their stakeholders can optimise their buying, selling and sourcing of specific processes and reduce complexities and transactional load requirements.

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