Government Procurement
Government Procurement in India
Domestic Regulations & Trade Prospects
Government Procurement in India
Domestic Regulations & Trade Prospects
Government Procurement in India
Domestic Regulations & Trade Prospects
Published by
D-217, Bhaskar Marg, Bani Park
Jaipur 302016, India
Tel: +91.141.2282821, Fax: +91.141.2282485
Email: cuts@cuts.org
Web site: www.cuts-international.org
With the support of
© CUTS International, 2012
First published: October 2012
This document has been produced with the financial assistance of the
British High Commission, New Delhi under the Prosperity Fund of the Foreign & Commonwealth Office, United Kingdom and under a project entitled “Government Procurement – An emerging tool of global integration & good governance in India.”
The views expressed here are those of the authors and can therefore in no way be taken to reflect the positions of the British High
Commission, New Delhi.
ISBN: 978-81-8257-173-0
Printed in India by Jaipur Printers Private Limited, Jaipur
#1221
Contents
Abbreviations
Note on Contributors
i vii Acknowledgement
xi
Preface
xv
Executive Summary
1. Introduction
xix
1
Background and Context
2
Government Procurement: The Theoretical Basis
7
Innovation and Government Procurement
20
Methodology
23
Structure of the Study
24
2. The Government Procurement Scenario in India
29
Introduction
29
The Size of the Public Procurement Market in India
31
Legal Framework
37
Preference Policies in Public Procurement
46
3. The Choices before India
103
Choices before India and the Option Exercised
103
Comparison of the Public Procurement Bill,
2012 with the WTO GPA 2011
105
Machinery for Ensuring Transparency and Fair
Competition in Public Procurement: A Comparison of the Public Procurement Bill (PPB) with the WTO GPA
134
The Probity Aspects of the Public Procurement Bill
173
Domestic Regulations & Trade Prospects
Government Procurement in India
Domestic Regulations & Trade Prospects
Government Procurement in India
Domestic Regulations & Trade Prospects
Published by
D-217, Bhaskar Marg, Bani Park
Jaipur 302016, India
Tel: +91.141.2282821, Fax: +91.141.2282485
Email: cuts@cuts.org
Web site: www.cuts-international.org
With the support of
© CUTS International, 2012
First published: October 2012
This document has been produced with the financial assistance of the
British High Commission, New Delhi under the Prosperity Fund of the Foreign & Commonwealth Office, United Kingdom and under a project entitled “Government Procurement – An emerging tool of global integration & good governance in India.”
The views expressed here are those of the authors and can therefore in no way be taken to reflect the positions of the British High
Commission, New Delhi.
ISBN: 978-81-8257-173-0
Printed in India by Jaipur Printers Private Limited, Jaipur
#1221
Contents
Abbreviations
Note on Contributors
i vii Acknowledgement
xi
Preface
xv
Executive Summary
1. Introduction
xix
1
Background and Context
2
Government Procurement: The Theoretical Basis
7
Innovation and Government Procurement
20
Methodology
23
Structure of the Study
24
2. The Government Procurement Scenario in India
29
Introduction
29
The Size of the Public Procurement Market in India
31
Legal Framework
37
Preference Policies in Public Procurement
46
3. The Choices before India
103
Choices before India and the Option Exercised
103
Comparison of the Public Procurement Bill,
2012 with the WTO GPA 2011
105
Machinery for Ensuring Transparency and Fair
Competition in Public Procurement: A Comparison of the Public Procurement Bill (PPB) with the WTO GPA
134
The Probity Aspects of the Public Procurement Bill
173
References: Pacific, Manila and Paris American Recovery and Reinvestment Act, 2009, available at http:/ Anderson, R. et al, (2012), ‘The Government Contractor Public Law and Legal Theory’, Paper No Arrowsmith, S. and R. Anderson (2011), ‘The WTO Regime on Government Procurement: Challenges’, Cambridge Press, New York, Arrrowsmith, S., S. Trumer, J. Fajo and L. Jiang (2010), ‘Public Procurement Regulation: An Introduction’, The EU Asia Inter Asian Development Bank, “The Strategic Importance of Public Procurement’, Manila, 2011, available at h ttp:// Baldwin, R. E. and J. D. Richardson, (1972), ‘Government Purchasing Policies, other NTBs, and the International Monetary Crisis’, In Government Procurement in India: Domestic Regulations & Trade Prospects Branco, F., (1994), “ Favoring domestic firms in procurement Petrochemicals OM No. 50013/1/2006-SO(PI-IV) available online at http://pib.nic.in/newsite/erelease.aspx?relid=19212, dated 27th July, 2006 Chakravorty and Dawar (2011) ‘The WTO regime on Government: Confederation of Indian Industry - Pricewaterhouse Coopers, (2010), ‘India Pharma Inc.: Capitalizing on India’s Growth Potential’, CVC (2001) “Trends/Features Noted in Cases related to Railways”, Central Vigilance Commission, available at cvc.gov.in/vscvc/ Based Competition Advocacy”, CUTS International, Delhi and Jaipur, 2011 Dalpé, R., (1994), “Effects of Government Procurement on Industrial Innovation”, Technology in Society, v 16, iss 1 Directive 2011/62/EU, European Parliament and of the Council, (2011), amending Directive 2001/83/EC on the Community code Official Journal of the European Union, L 174/74 Directorate General of Supplies and Disposals, Annual Report, 201011 Edler, J. and G. Luke, (2007), “Public procurement and innovation – Resurrecting the demand side”, Research Policy, pp 949-963 Men, 2009 European Commission, Trade and Investment Barriers Report, 2011, Brussels, Belgium European Commission, Trade and Investment Barriers Report, 2012, Fiches, B., (2011), ‘Public Procurement - Buy Chinese Policy’, h ttp://madb.europa.eu/madb_barriers/ barriers_details.htm, accessed on August 01, 2012 G