Global Procurement Summit 2020
February 10, 2020, New Delhi, India
Global Procurement Summit 2020
Request Q&A
Video
Procurement in the 21st century
Available
In cart
Free
Free
Free
Free
Free
Free
Add to favorites
394
I like 0
I dislike 0
Available
In cart
Free
Free
Free
Free
Free
Free
  • Description
  • Transcript
  • Discussion

About speaker

T. V. Somanathan
Secretary at Department of Expenditure

About the talk

Inaugural address by Dr. T V Somnathan, Secretary, Department of Expenditure, MoF

at AIMA's 5th Global Procurement Summit 2020. Dr. Somnathan shares his views on how in procurement, the focus must be on economy, rigour, fairness and transparency.

00:05 Procurement summit

02:08 Raising the awareness

05:15 Future eventualities

08:18 Key areas of procurement

Share

It's a great pleasure for me to be here today at this for human Summit. This is a rather difficult time in terms of scheduling for us in the Ministry of Finance. The budget has a dusting presented and is being discussed in Parliament. When I was asked to come to this event. I was aware of that but I decided that I must come for two reasons one that I believe the procurement function is an extremely important part of governance in every country and no less in India. And therefore I thought it is important for

the Ministry of Finance, which is in charge of procurement rules and policy in government to show its commitment to procurement nipple. I decided to say yes, there was a second reason which is that I personally have had a lot to do with procurement in my career partly at the head of large infrastructure. Organizations for Chennai Metro Rail the Tamil Nadu Road sector project Metropolitan water supply board of can I wear a wedding in charge of actually awarding lots of contract? I also happened to be the head of the world bank's corporate procurement function as

director of General services from 2011 to 2014. So I personally have an affinity to the procurement function. So I had to say yes when I said yes, I didn't know that I would be spending the previous four days traveling and that I would return last night quite late. I also didn't know that I would have to be in Parliament House at 10:35. So I have managed to keep my engagement. I'll keep my remarks brief and hopefully they will be something there. That is the baby some marginal value

the all-india management association and World Bank for making the effort to highlight the important. Of this vital underappreciated function. I'm confident that your deliberations today will help raise the awareness of the nuances of procurement in the 21st century and also help us move towards better methods of procurement is a major part of governance. It drives a lot of the private investment in the economy and efficient procurement is a precondition for timely execution of projects and for the

delivery of Public Services. It's vital that procurement is fast transparent and economical. Perkiomen is one of the biggest items of government budget and it makes a big difference to the fifth apart from its value to the people that we procure from the efficiency of procurement makes a big difference to fiscal discipline in government. We can do procurement well or badly and that makes a significant difference to the efficiency with which public results of the global government procurement economy is estimated to be nearly 10 trillion

dollars in value and the most countries including India is constitute more than one fifth of the total GDP. If you add the central government to state governments in the various public undertakings Don't be in the Ministry of Finance recognized public procurement as a strategic tool to achieving social infrastructural and economically ejected. Given the size and complexity of government will always be room for improvement in procurement. We both think it's very appropriate. This Summit is Funk focusing on the various concerns

of procurement in the 21st century. Now in the Ministry of Finance have taken a lot of steps to move out of the 20th century and into the 21st based on part learning. We recently completely revised Regional Financial rules and a procurement manuals and we've also made major advances in the use of technology in procurement key driver of digitization, not only but also in procurement and as you all are aware and as you can see up there we have the government electronic Marketplace. We have the Central Public

procurement portal which currently has electronic beats for more than 100,000 tenders including state government tenders. And we have 18 to 19 lacrosse per annum of tendering on the Central Public procurement photo the government electronic Marketplace established in 2016 for common use goods and services has clock transactions with 40,000 crores of rupees and I had the privilege of being associated with its early phases of introduction. Public-private Partnerships are an important form of infrastructure development

across various sectors. PPP contracts are typically long-term contracts and in spite of the best due diligence. It's really possible to anticipate every future eventuality or risk and therefore I think one of the problems if you continue to face with many of our public-private Partnerships is how do we deal with an anticipated risks and changes that are not specifically provided for in contract? So I would really appeal to all of the experts here to to help us design better mechanisms for the management of PPP contracts over long

durations. What do we do when we require something to be done that is not conceived off in the contract and how do we avoid getting into litigation and arbitration whenever something unanticipated happens And that brings me to close to the issue of contractual disputes. We have mechanisms in contracts for arbitration. We have specification of where it goes to court and so on but so far we have not been successful in actually using arbitration as a means of quick resolution of contract dispute in Indian circumstances,

given Indian legal the conditions given the way arbitration law is interpreted in India by the courts and given the time it takes to resolve disputes in the courts what practically can we do which would minimize the cost to arbitration which would minimize disputes and which would maximize the speed with which disputes are resolved. This is not a trivial question for extremely difficult question and if we can find some answers in Summit like this, I think that would be an exceptional value to public procurement. The government of India has taken some steps on Expediting arbitration

and so on but I must confess that the success has been limited and we have a long way to go to my suggestion would be let's not necessarily focus on you know, changing laws changing because the change law is also subject to judicial interpretation and we don't know what it is. Finally be interpreted as is there something that we can do to write contracts better or you don't provide for remedies with in the contract such that if ABC unanticipated events happened then XYZ amounts of payable. I'm being very

simplistic. What I'm trying to say is if we can get out of disputes rather than try to focus on the future resolution perhaps in Indian conditions. That is something we should Aspire fall because I don't think it's going to be easy to say arbitration awards are final you want to feel them to the court and because it was still a Feeling. You can write any number of Provisions into contracts going right into law. But appeal rights a very strong in India under the Constitution and it'll be difficult to out the jurisdiction of any Court whatever you like into water below. So I think it's these

are very difficult questions. But if we can get some thoughts on how to go about it, it'll be extremely useful. The conferences covering a lot of key areas of two humans that need attention and therefore and I hope that you will come up with the fashionable word disruptive ideas. That would actually get us onto a new trajectory of procurement in India by disruption. I don't mean the kind of disruption where I have upset the schedule of this event by speaking for that. I mean good disruptions that actually, you know, push things forward.

From my experience in public procurement particularly in India. I think the focus of a public procurement system is on economy on Ricker on fairness and on transparency all extremely important a good public procurement policy is to get us the economy. We need to be rigorous in order. Do we need to be fair? Because we have the government. We don't favor particular supplies over other supplies and transparency is an important means to Faneuil but I also think that in this process

where we need to improve in the government is that we need economy without delay. We don't since we want the best price on a consultant fee for a five-year project. If we take one year to prepare the consultant was going to prepare the project report then is that really the best way to go about it? So perhaps we need mechanisms like read contracts in the service sector where we can actually engage a consultant in 7 days without having to go through a procurement for the consultant who will prepare the procurement documents for the eventual contractor and so

on to the stain of processes, perhaps we need to look for economies there so that we get the economy without delay. I think we also need bigger without rigidity. We need to be rigorous but if our procedures are so set in stone that they can't handle developing situations. Then we have a problem. How do you maintain trigger without becoming rigid? And how do you beat how how can we be fair? Without being inefficient. So if this is an important objective in public procurement, it's extremely important. We are legally bound to be fair we intend to be fat but can we find

ways where we can be fair without necessarily having to follow a process that is relatively inefficient for the purpose that we're trying to achieve and finally can we get transparency without paralysis because I've often found at Indy Inn in the Big Dipper to transparency and be prepared for every possible questions that can be asked about a procurement. We actually decide not to do what is optimo but to do that which is safe until this again is some I don't have answers to these challenges that I'm posing, but I'm hoping the experts in this room will help us move in that

direction.

Cackle comments for the website

Buy this talk

Access to the talk “Procurement in the 21st century”
Available
In cart
Free
Free
Free
Free
Free
Free

Ticket

Get access to all videos “Global Procurement Summit 2020”
Available
In cart
Free
Free
Free
Free
Free
Free
Ticket

Interested in topic “Artificial Intelligence and Machine Learning”?

You might be interested in videos from this event

July 15 - 17, 2020
Online
51
3.99 K
ai, automl, big data, roi, rpa, technology

Similar talks

Ashutosh Vajpayee
Joint Secretary, Economic Affairs at Government of Rajasthan
+ 3 speakers
Xiaoping Li
Senior Procurement Specialist at World Bank
+ 3 speakers
Meena Agarwal
Director at NIFM
+ 3 speakers
Shanker Lal
Lead Procurement Specialist at World Bank
+ 3 speakers
Available
In cart
Free
Free
Free
Free
Free
Free
Suresh Prabhu
India’s Sherpa
Available
In cart
Free
Free
Free
Free
Free
Free
Ravi Agrawal
Chairman at Gencrest Pvt Ltd
+ 5 speakers
Jimmy Masrin
CEO at PT Caturkarsa Megatunggal
+ 5 speakers
Danny Masrin
Professional Golfer⁣
+ 5 speakers
Katie Haydon Perry
Executive Vice President at Haydon Building Corp
+ 5 speakers
Andrea Sy
Partner & Co-founder at Vector
+ 5 speakers
Rebeca Hwang
Partner at Kalei Ventures and Professor of Practice at Thunderbird School of Global Management
+ 5 speakers
Available
In cart
Free
Free
Free
Free
Free
Free

Buy this video

Video

Access to the talk “Procurement in the 21st century”
Available
In cart
Free
Free
Free
Free
Free
Free

Conference Cast

With ConferenceCast.tv, you get access to our library of the world's best conference talks.

Conference Cast
577 conferences
23287 speakers
8705 hours of content