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E-procurement for defence purchases above Rs 10 lakhs

Defence ministry of India has decided to use e-procurement for all purchases above Rs 10 lakhs, starting June 6, 2014, reports Indian Express. This limit will be lowered to Rs 5 lakhs from April 1, 2015.

E-procurement for the defence ministry is being initiated to counter the allegations of corruption in defence procurements. Orders for high-value items including armaments will also move through this platform, making it visible to potential suppliers.

So far, only the tender notices for defence procurement were being placed online. Speaking to the publication, Savitur Prasad, Principal Integrated Financial Adviser in the defence ministry said that going forward, tenders will be processed completely online right from placing of orders to issuing compliance certificates.

Earlier, the Indian Navy and Air Force had raised objections about making India’s defence preparedness too transparent through an online platform. However, ministry officials had pointed out that concerned entities are already tracking international and domestic purchases. So an e-procurement platform will make no difference.

The previous government had set up an inter-ministerial committee in 2011 to initiate the process. But the plan was shot down due to problems in implementation.

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