SPP-India. Ministry of Finance Department of Expenditure Government of India September, 2018

Transcription

1 SPP-India Ministry of Finance Department of Expenditure Government of India September,

2 SDG 12.7 Pertains to SPP and can be adopted by countries as per their national policies; 2

3 Sustainable Procurement Task Force (SPTF) In March, 2018 a Sustainable Procurement Task Force (SPTF) was constituted with following Terms of Reference Review International Best Practices in the area of SPP; Inventorise the current status of SPP in India across Government organizations; Prepare a draft Sustainable Procurement Action Plan; Recommend initial set of product/ service categories (along with their specifications) where SPP can be implemented Identification of few items where SPP can be started is the focus area of the Task Force 3

4 SPTF Members Joint Secretary, Ministry of Finance, Chairman; Director, Procurement Policy Division, Ministry of Finance, Member Secretary; Representative from Ministry of Environment, Forestry & Climate Change (MoEFCC); Representative from Ministry of Railways (MoR); Representative from Government e-marketplace (GeM); Representative from Bureau of Indian Standards (BIS); Representative from Bureau of Energy Efficiency (BEE); Mr. Sanjay Kumar, General Manager, Dedicated Freight Corridor Corporation of India; United Nations Environment Programme (UNEP), Industry, academia etc. for consultation while making the recommendations; The Task Force is to submit its report by December,

5 SPTF Sub-Committees Sub-Committee 1: Computers; Printers; Other office automation equipment Sub-Committee 2: Printing Writing Paper; Sanitary Ware Washroom Chemicals; Soaps; Ply Wood Sub-Committee 3: Vehicles 5

6 Few initiatives so far 6

7 Provisions in existing - Rules & Policies General Financial Rules (GFR), 2017 Rule 173 (xi) (b): Criteria for determining responsiveness are to be taken into account for evaluating the bids such asperformance/efficiency/environmental characteristics; Rule 136 (iii): No work shall be commenced or liability incurred in connection with it untila properly detailed design has been sanctioned; while designing the projects etc, principles of Life Cycle cost may also be considered; 7

8 GFR Star Rating Certification Rule 173 (xvii) of GFR, 2017 states that Ministries/ Departments while procuring electrical appliances shall ensure notified threshold or higher Star Rating of BEE; Depicts that purchase is done on the basis of Value for Money and not on the basis of L-1

9 Enabling provisions in Rules & Policies Star Rating Certification Thresholds Para of Manual for Procurement of Goods, 2017 Appliance Split Air conditioners Frost Free Refrigerators Ceiling Fans Water Heaters Threshold Star Rating 5 Star (under normal conditions where annual usages are expected to be more than 1000 Hrs) 3 Star (where usage of AC is limited e.g. in conference rooms) 4 Star 5 Star 5 Star 9

10 Enabling provisions in Rules & Policies Manual for Procurement of Goods, 2017: Para 2.2- Formulation of Technical Specification Complies with Sustainable Criteria & legal requirements of Environment or Pollution control board; Emphasizes on acquisition of Environmental friendly material through the use of ISO or voluntary environmental standards; Manual for Procurement of Goods, 2017: Para 1.6- VfM Effective, Efficient & Economic use of Resources through Recycle; Minimizing Waste & Greenhouse Emission; Conserving Water and Energy; Minimizing habitat destruction & Environment degradation 10

11 EESL Model Energy Efficiency Services Limited (EESL): UJALA Scheme As of 7 th September, 2018 Government of India initiative for domestic lighting and appliances; 300 Million LED Bulbs distributed across India; Cost Savings of Rs. 16,016 crores (USD 2.23 Billion); Development of market for Sustainable products and hence reduction of rates; 32 Million tonne CO 2 reduction

12 Social Sustainability Rule 153 (ii) of GFR, 2017 refers to the Micro, Small & Medium Enterprises (MSMEs) Procurement policy, reserved items; 20% procurement through MSE if they quote within L1+15% and match price of L1 12

13 Social Sustainability Startups: Rule 173 (i) of GFR 2017, Para 5.1.4(g) of Manual for Procurement of Goods, 2017 and para (ix) of Services Manual, 2017 The condition of prior turn over and prior experience may be relaxed for Start-ups, subject to meeting of quality & technical specifications and making suitable provisions in the bidding documents

14 LCC Example Delhi Metro Rail Corporation (DMRC) used LCC approach in award of their contract worth USD 597 Million

15 Issues & Way Forward 15

16 Limitations & Way forward Major reforms have taken place in Public Procurement sector in India in last 4-5 years. Some of the examples are revision in GFR, launch of Procurement Manuals etc. USD 300 Billion worth of e-procurement happens every year; However, for SPP reforms to take place, time and expertise both are needed; for which insufficient time/ even perhaps lack of expertise within SPTF 16

17 Procurement & Vendors Data For spend analysis, implementation of UNSPSC (United Nations Standard Products and Services Code) is being considered; Lack of sustainable products and information is a barrier in SPP implementation; For example Which is better, Virgin Paper or Recycled Paper?; What is the quantum of paper purchase by Government offices? The manufacturing capacity of vendors, if any of the above mentioned paper type is selected fit for purchase?

18 Eco-Mark Status Eco-Mark scheme was instituted in 1991 by MoEFCC for procurement of environmental friendly products; Eco-Mark certification is given by BIS and is an addition to the ISI Certification. At present there are 52 ecomark licenses; Lack of interest from market/ Govt. Procurement Policies; Task Force hopes to revive the Eco-Mark; Strengthening of the labelling 18

19 LCC-Some issues to consider Though DMRC won the case, there are some issues to be looked into; Between the winning bidder and M/s Siemens there was a difference of Rs. 645 crores (USD 92.4 Million). What safeguards should be taken to secure this difference? How multipliers and penalty factors should be determined? What testing measures were deployed before and after the operations Consultations with all Stakeholders These issues were raised in front of the Task Force but no conclusive answers could be found so far. 19

20 Thank you!! 20