Procurement Norms Violations Exposed in 2024

In 2024, the DPIIT identified 259 tenders as non-compliant with public procurement norms. Main reasons include failure to apply the Public Procurement (Preference to Make in India) Order and improper tender requirements. Additionally, India's trade deficit in petroleum persists due to reduced export value despite increased volumes.

The Department for Promotion of Industry and Internal Trade (DPIIT) has identified as many as 259 tenders that contravened public procurement norms in 2024, a fact disclosed to Parliament on Friday. Minister of State for Commerce and Industry Jitin Prasada explained that procurement entities are failing to implement the Public Procurement (Preference to Make in India) Order in their tender processes, which is a major reason for non-compliance.

In an examination of 867 tenders by the DPIIT, conducted on a random sampling basis, it was uncovered that these 259 tenders did not meet the stipulations specified in the 2017 order. Issues identified included the mention of specific brands, high turnover requirements, unapproved global tender inquiries, and mandatory foreign certification requirements.

The public procurement order applies to the acquisition of goods, services, and works by all central government departments and associated bodies. In terms of trade, the minister noted that the petroleum trade deficit is mainly due to falling prices and demand, and the decline in gems exports is due to reduced discretionary spending in key markets.