Steel Authority of India Ltd (SAIL) has simplified its purchase and contract procedures with a view to facilitate the timely completion of projects that are being undertaken as part of its massive Rs. 37,000-crore growth plan. The revised Purchase/Contract Procedure – 2006 (PCP-06) manual, prepared by the company’s Vigilance Department, was formally released by Mr. S.K. Roongta, Chairman, SAIL, here today.
SAIL is presently implementing its growth plan that seeks to achieve 22 million tonnes of steel production capacity by 2010. Providing the input material of right quality at right time and at optimum price is a vital enabler in completing the ongoing projects.
The last purchase manual of SAIL was published in the year 2000. It required revision in view of the experience gained during the intervening years, changes in market dynamics and supplier behaviour, increase in competition in the steel sector, technological advancements in e-commerce, various instructions issued by Central Vigilance Commission, etc.
has been designed to function as an ‘umbrella procedure’ for handling all kinds of purchases and operating contracts. The procedure aims at meeting the expectations of internal and external customers, transparency requirements, improving the speed of decision making, instilling confidence amongst the decision taking authorities, etc. It is envisaged that the procedure will bring more transparency, clarity, flexibility and speed into SAIL’s purchase and operating contracts.
Features of PCP-06 like flexibility in tendering process, earnest money deposit and payment terms, inclusion of reverse/forward auctioning, small value purchase, acceptance of bid through fax/e-mail, etc., will serve to facilitate decision making and internal resource generation for timely implementation of ensuing projects.