FinMin releases revised guidelines on public procurement

New Delhi: The finance ministry on Friday released revised guidelines on public procurement and project management which outline innovative rules for faster, efficient and transparent execution of projects.

The guidelines also permit alternative methods for selection of contractors, which can improve speed and efficiency in execution of projects.

In appropriate cases, quality parameters can be given weightage during evaluation of the proposal in a transparent and fair manner, through a Quality cum Cost Based Selection (QCBS) as an alternative to the traditional L1 system, the ministry said.

Finance Secretary and Secretary Expenditure, T V Somanathan released the guidelines to usher in reforms in public procurement and project management here on Friday, a finance ministry tatement said. The formulation and release of these guidelines are part of the continuous process of review of existing rules and procedures. "These guidelines attempt to incorporate into the realm of Public Procurement in India, innovative rules for faster, efficient and transparent execution of projects and to empower executing agencies to take quicker and more efficient decision in public interest," the ministry said.

Some of the improvements include prescribing strict timelines for payments when due. Timely release of ad hoc payments (70 per cent or more of bills raised) is expected to improve liquidity with the contractors, especially micro, small and medium enterprises (MSMEs), it added.