The finance ministry has initiated reforms in public procurement and project management to execute projects and provide payments to the micro, small and medium enterprises (MSMEs) on time.

       Finance secretary on Friday released revised guidelines, which outline innovative rules for this. The guidelines permit alternative methods for selection of contractors, which can improve speed and efficiency in execution of projects.

       In appropriate cases, quality parameters can be given weightage during evaluation of the proposal in a transparent and fair manner. This can be done through the quality-cum-cost based selection (QCBS) as an alternative to the traditional L1 system. The old system gives weightage to the lowest commercial bid, the ministry said.

       Executing public projects on time, within the approved cost and with good quality has always been a challenge.

       “As the pace of economic development steps up, careful examination of procedures and rules is essential to ensure unwarranted roadblocks are removed. Also, new innovations must be utilised for increasing value-for-money of the taxpayer,” the ministry added. As part of the government’s digital thrust, electronic measurement books have been prescribed as a means of recording progress of works.

       As many as 563 central sector projects, comprising 65 per cent of the total 862 with definite timelines, were running behind schedule as on October 1 this year, according to official data.

       Some of the improvements in guidelines also include prescribing strict timelines for payments when due. Timely release of ad hoc payments (70 per cent or more of bills raised) is expected to improve liquidity with the contractors, especially in micro, small and medium enterprises, the ministry said. This system, along with other IT-based solutions proposed in the guidelines, will help in realising the dream of efficient Digital India, facilitate faster payments to contractors and reduce disputes, the ministry said.

       The number of complaints filed by small businesses over delayed payments is nearing the 100,000-mark, involving a sum of Rs 24,385 crore. Of this, only 12 per cent has been disposed of or mutually settled. An estimated 91,424 applications have been filed so far, according to the MSME Samadhaan, a delayed-payment monitoring portal set up four years ago as part of the government’s efforts to clear dues to MSMEs.

       The Central Vigilance Commission, the Comptroller & Auditor General and the NITI Aayog had carried out analysis of procedures and rules for public procurement and project management. They suggested changes in strategies to meet challenges of public procurement. Besides, Model Tender Documents for procurement of goods and non-consultancy services were also released on Friday as part of the continuous process of review of existing procedures.

       MTDs specifically cater to the needs relating to e-procurement, thereby easing the process for adoption.