Study on Government Procurement: Study for Evidence Based Competition Advocacy

January 2012| Devika Malhotra, CUTS Institute for Regulation & Competition

The Committee on National Competition Policy (C-NCP) has been constituted by the Ministry of Corporate Affairs, Government of India, with a view to framing of a National Competition Policy (NCP), developing a strategy for competition advocacy with the government and the private sector, fine tuning the Competition Act, 2002 and looking into any other matter in relation to competition issues. It has submitted a draft National Competition Policy and has sought to gain specific inputs and undertake evidence based advocacy to develop a competition advocacy strategy with the government and the private sector. To carry out evidence-based advocacy, sector specific studies have been conducted for which thirteen sectors/themes have been identified and the study on government procurement is one of them. These sector specific studies including the present one on public procurement have focused on reviewing competition distorting provisions in policies, laws, regulations, practices etc. governing the sector. The present study has attempted to provide illustrative examples of those laws, regulations and policies which either exert or have the potential to exert anti-competitive effects, and thus influence the outcomes of the law/regulation/policy concerned. The study focuses on Law/policy induced competition distortions. It has also recommended changes in the regulations and their implementation procedures to address the competition related issues. The study has also highlighted an approach to promote and protect competition in the sector.
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