COMMENTARY: India - Stop cartelization in public procurement
“Public procurement in India constitutes about 30% of the GDP, with the
total annual expenditure of around 15-20 Lakh Crores and that for Union
Government alone in the range of Rs. 2.5 – 3 Lakh Crores. This is the
government activity most vulnerable to corruption, not only between the
suppliers and the government staff but also within the suppliers themselves.
The latter emerges in the form of cartels, i.e., bid rigging and collusive
bidding. Though integrity of the procuring staff and competition between
suppliers are two sides of the same coin, yet so far, the focus has largely
remained on tackling departmental corruption and, except for blacklisting /
holiday listing etc. against suppliers for a few years, there is hardly any
policy to report bid rigging by suppliers or to detect and punish cartels of
suppliers. There has been a lack of focus on the supply side issues,
particularly, cartelization due to poor awareness on the tools of competition
law in India.”
Read the article
by MM Sharma, Vaish Associates, Advocates, in Mondaq. https://groups.undp.org/t/3911810/762650/15540/5/