Govt to use 'buying power' to procure goods at cheaper rates

New Delhi: Government, the largest consumer of goods and services in the country, proposes to use its "buying power" to negotiate competitive rates from suppliers and service providers.

Cabinet Secretary Pradeep Kumar Sinha has asked government departments and agencies to draw up annual procurement plans for common items of consumption so that better prices could be negotiated, sources said.

"Most competitive rates for procurement would become possible only when the GeM (Government e-Marketplace) leverages government's buying power through an aggregation of demand.

"It is, therefore, necessary that each ministry draws up its Annual Procurement Plan for common user items and place it on the GeM portal by April 15," a source quoted Sinha as saying in a communication to Revenue Secretary Hasmukh Adhia.

Finance Minister Arun Jaitley in his Budget speech had said to bring more transparency and efficiency the Director General of Supplies and Disposal (DGS&D) will establish a technology driven platform to facilitate procurement of goods and services.

The Commerce Ministry has proposed to transfer DGS&D into GeM for procurement of goods and services by government and its agencies.

As per the DGS&D website it is developing a government e-marketplace and in the first phase, two items are being included - computers and vehicle management (taxi) service which are used by various government ministries, departments and organisations.

In 2015-16, different government departments and agencies had floated about 5.7 lakh e-tenders valued at Rs 4.04 lakh crore.