30 April 2012

Indian procurement bill facilitates green procurement

The Government of India has drafted a Public Procurement Bill that integrates socio-economic policies into procurement policy, facilitating green procurement and energy efficiency preferences. The bill lays down broad principles and procedures to create a fair, transparent and competitive environment for procurement.

The government’s General Financial Rules have changed to allow procurement based on assessment of Life Cycle Cost (LCC), in which the operational costs of a product are considered, rather than purely the Capital Cost. Taking LCC into account further strengthens the importance of procuring energy efficient products and it is estimated that applying LCC could reduce operating costs by 20-30 percent.

The bill emphasises 'maximising economy and efficiency, promoting competition among suppliers and contractors while ensuring a fair, transparent and equitable procurement process, and promoting the integrity of, and public confidence in, the procurement process undertaken by the Central Government'.

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