The Hindu : Karnataka / Bangalore News : State’s e-buy initiative sees swift returns

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Wednesday, May 07, 2008
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Karnataka

Karnataka - Bangalore

State’s e-buy initiative sees swift returns

Special Correspondent

Transaction time has reduced by
as much as
40 per cent

BANGALORE: Six months after the Karnataka Government began to automate its procurement processes, the first gains have become visible: total transaction times reduced by 40 per cent; unsuccessful bidders getting their earnest money back swiftly — and for the first time in the recent history of the Public Works Department, the phenomenon of “negative tenders”: bids that are lower than the department’s own estimates by as much as 10 per cent.

In a joint presentation with Hewlett Packard (HP), their technology partners, key department heads of the Government, shared with the media here recently their experiences with the e-procurement system now in force for about six months.

Sudhir Krishna, Principal Secretary, Public Works, Ports and Inland Water Transport Department, said the Public Works Department had gone totally the e-way for all tenders above Rs. 50 lakh.

The department has taken the lead in changing over to the more efficient and transparent system — and the first results were very encouraging: a secretariat library project worth Rs 1.37 crore saw nearly 10 per cent lower tenders than the estimates.

“Prospective suppliers can record their bids online any where, at any time before the due date... even the tender forms are now placed for free download,” he added.

For the departments concerned, buying the electronic and Net-enabled way has seen significant savings in total time for the process, even as the system embraces the complete lifecycle of the procurement, not just the tendering process.

In this respect, this is a first for any State government, Mr. Krishna suggested.

The first tender to be processed using the new system was a requirement of the Sarva Shiksha Abhiyan (SSA) and Project Director Vandita Sharma said: “We were the guinea pigs — but it was worth it... the e-governance initiative of the SSA in Karnataka has gone beyond procurement to embrace all administrative activities... particularly the management of the computerisation programme that has already touched 2,500 primary schools.”

Ajay Seth, Secretary (e-governance), and Kallol Hazra, HP’s Director Consulting and Integration Services, spoke.

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