SAIL simplifies purchase steps for growth

New Delhi, Oct 9: Public sector Steel Authority of India Ltd (SAIL) has simplified its purchase and contract procedures with a view to facilitate the timely completion of projects 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 SAIL Chairman S K Roongta here today.

The manual is expected to bring more transparency, clarity, flexibility and speed into SAIL's purchase and operating contracts, an official spokesperson said.

At present, the public sector company is 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.

PCP-06 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, as well as instilling confidence among the decision-taking authorities.

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 among others will serve to facilitate decision making and internal resource generation for timely implementation of ensuing projects.

The last purchase manual of the steel behemoth was published six years ago and required revision incorporating 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, and various instructions issued by Central Vigilance Commission.

UNI