Context:

• Supreme Court expressed its growing concern over the award of tenders being challenged in writ proceedings almost as a matter of routine.

Why:

• Need the Central government must pass legislation on Public Procurement.
• Nearly, 30% of GDP is contributed by this public procurement which has a fiscal significance in public policy.

 

Previous bills:

• United Progressive Alliance introduced the Public Procurement Bill in the Lok Sabha in 2012, The National Democratic Alliance, in 2015, revamped the provisions of the earlier Bill to come up with the Public Procurement Bill, 2015
• Both the bill were not passed in parliament.

Constitutional Provision:

• There is absence of Any Constitutional Provision regarding such Public procurement. Reason- Article 282 gives financial autonomy in public spending for executive.

State take on Public procurement:

• State public procurement is regulated by a State Act only in five states Tamil Nadu, Karnataka, Rajasthan, Andhra Pradesh and Assam.
• There is absence of grievance redress mechanisms in above states.

Judiciary Stand:

• Courts have imposed such stringent Self-Imposed Restrictions in the area of judicial review regarding tendered and power to interfere.

Conclusion:

• Absence of Legislation would only encourage the growth of other negative aspects of public procurement.
• In such a depressing legal scenario, it is no surprise that public procurement  tender awards are often challenged in constitutional courts.
• Passing a roboust legislation in Public procurement will Reduce Litigations in Court Regarding Procurement Help Fiscal Consolidation
• Accountability in procurement. Boost MSME further.