E-procurement: State Govt Lowers Slab to Rs 5 Lakh

Published: 13th May 2015 06:00 AM  |   Last Updated: 13th May 2015 04:08 AM   |  A+A-

KOZHIKODE:  The state government on Tuesday lowered the minimum slab for e-procurement to Rs 5 lakh from Rs 25 lakh with immediate effect in an effort to deliver transparency in the financial transactions associated with small-scale works undertaken by it.

The government issued an order lowering the slab to Rs 5 lakh following the recommendations from an apex committee for e-governance which met in February this year. All government departments, Public Sector Undertakings (PSUs) and autonomous bodies were directed to follow e-procurement for tenders above Rs 5 lakh.  The e-Procurement system is already operational with online payment facility and auto-refund for unsuccessful bidders. As per previous Government Order (GO) issued in 2012, all government departments, PSUs and autonomous bodies were directed to adopt e-procurement for all tenders above Rs 25 lakh.

“After implementation of project, the government has revised the earlier order to previous adoption slab to Rs 5 lakh. With the lowering of the entry threshold value to Rs 5 lakh, more departments or organisations would come under the purview of the e-procurement system, thereby increasing the transparency and efficiency of the tendering process,” said the Director of Kerala State IT Mission (KSITM), Mohammed Y Safirulla.  According to data collected by KSITM 167 users which include government departments, PSUs and autonomous Bodies have become online by April 2015. Since inception of the project in 2011, 35072 tenders worth Rs 27,480.86  crores were floated through e-procurement system until April 30, 2015.

The state government had implemented the e-Government Procurement system to enhance transparency and efficiency in Public procurement activities and monitor the same on a real-time basis.

Kerala State IT Mission is the  implementing agency for e-Procurement system across the State & NIC is the Service Provider. The project was inaugurated on  December 7, 2011.

Contractors’ Assn Hails Govt Move

Meanwhile, Kerala Government Contractors Association welcomed the move by the government. “It is a welcome move as it will enable the government contractors to quickly change their bills once they complete the work. Some section of small-scale contractors raise objection because they are not used to the system,” V K C Mammed Koya, president of Kerala Government Contractors Association. KSITM which is the implementing agency for the project, has a dedicated e-Procurement Project Management Unit (PMU) established in Thiruvananthapuram.

Stay up to date on all the latest Kerala news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp