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Eprocurement ON INDIAN RAILWAYS

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Title: Eprocurement ON INDIAN RAILWAYS


1
E-Procurement on Indian Railways
Strategy , Scope Issues
2
Purchases
  • Indian Railways
  • Annual Turnover gt Rs. 60,000 cr.
  • Annual purchases for supply of goods including
    Oil gt Rs. 15000 cr.
  • Annual Works gt Rs. 12000 cr.
  • Purchase process are decentralized , made by 25
    Units , through process of competitive bidding.
  • gt 2 Lakh purchases settled in one year thru
    tenders.

3
EGP -Initiatives
  • E-Procurement was adopted by Railways as a part
    of overall reform process .
  • Northern Railway successfully implemented EGP for
    Supply tenders from May 05.
  • 25 Railway Units to adopt EGP covering entire
    Indian Railway.
  • Railway plan to develop single portal for entire
    procurement process covering all units on I.R.

4
Procurement policy
  • I.R. have formulated well established procurement
    policies which have evolved over central theme of
    ensuring
  • Transparency
  • Fair play
  • Quality procurement
  • Competition Equal opportunity to all eligible
    vendors.

5
Purchase source wise
  • Share of
  • Public sector Units 34
  • Large Private Industry 60
  • S.S.I and rural sector 6

6
Purpose Definition
  • E-procurement application provides a common
    platform using secured Web site where the buyer
    and the sellers can participate in the
    procurement process in fair and transparent
    manner
  • The e- procurement system shall be governed by
    digital security features as provided under
    Indian I. T. act 2000.

7
Scope of work
  • The scope of work include
  • Uploading of Tender notices and Tender documents
    on secured website for Railways.
  • Submission of digitally signed electronic bids
    for Data Integrity, Authenticity, Non
    repudiation, and confidentiality.
  • Pre-designed interactive Tender forms for
    submission of offers online.

8
HQ Database server application sever
Operating system , / Oracle 10g/ D2K /J2E

Rly having Line Connectivity
Bid download/ Online submission
Rly A
Vender A
Vender B
Rly B
Rly D
Rly C
Vender C
9
Scope of work...
  • Scope of work also include
  • E-Tenders for supply and works .
  • Search options on tenders from home page.
  • Payment Gateway Integration for online payments .
  • Online vender registration from home page.
  • Reverse Auction /Auction sale

10
Security features
  • Introduction of Digital signatures for
  • e-transactions.
  • Introduction of Public Key Infrastructure for
    data encryption/decryption .
  • Time stamp by certifying agency.
  • 128 bit S.S.L. (secured socket layer) for secured
    data transmission .

11
Recommended EGP Trust tools
  • Digital signatures and verification tools.
  • Bid Encryption and decryption process.
  • Digital permission for E-Tender box opening.
  • Interactive bid submission forms , to replicate
    bid submission.
  • Bid evaluation before submission .
  • Need for Digital Archive.

12
Trust Tools Digital sig. P.K.I
  • These shall ensure demonstration of enhanced
    level of trust for
  • Authentication Digital certificate of sender
    attached with each bid document .
  • Integrity Protection
  • By Hash check using same one way hash function
    and senders public key.
  • Authorization Only Rlys authorized person can
    decrypt open e-tender box.

13
Recommended E-Forms
  • EGP application has following essential
    components
  • Interactive commercial offer form.
  • Compliance statement form .
  • Deviation form .
  • Performance eligibility form .
  • Attachments.

14
Process flow chart
Attach corrigendum
Create tender notice
E-TENDER BOX
Time stamp
Attach tender document
Upload Tender
HTML receipt
encrypt
SUBMIT BID
Notarize
Digital signature
Free download
Vender Registration
Digital signature
15
post tender opening work flow
E-TENDER BOX
Time lock
Contracts requests
Decrypt With PKI
Decrypt and Open
Upload
Generate Tabulation
View online
Store archive
CONTRACT
Rate-wise
technical
commercial
16
Major Issues
  • Major Issues need to be addressed are
  • Application Inter-operability.
  • Global participation with D.C.
  • Lower level of Trust in EGP Integrity.
  • Lack of initiative by Participative Industry.
  • Multiplicity of EGP Sites.
  • Non uniformity in EGP initiatives.

17
Suggestions
  • Use of Common /Single EGP Website for All.
  • Industry participation to be intensified.
  • Employ well tried Digital Trust tools .
  • EGP initiatives need to be appreciated ,
    encouraged and intensified .
  • EGP forums for Buyer /Seller to be created at
    National level for uniform adoption.

18
Progress of Work
  • Pilot project successfully completed by N. Rly .
  • E-procurement started by COS N.Rly from May 05.
  • More than 1200 E-tenders Uploaded and 800 tenders
    opened electronically.
  • 500 E-tenders decided thru e-procurement
  • EPS to begin for Works and Engg. track supply
    tenders.

19
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20
Future Plan
  • Railways to setup Centralized Data Center for
    rolling out E.P.S. for 25 other Zones.
  • Single Portal for tendering process for all
    Railway units.
  • Single log-in registration for Vendors.
  • CONTRACT TRACKING, INSPECTION, C.R.I.S. to
    begin training and direct connectivity for each
    Zone.
  • 8 Zones and three P.U.s to start EPS in 1 yr.

21
Trust in Public Procurement
  • The Trust level in Public Procurement between the
    Buying organizations the Participative
    Industry is very low .
  • There can not be Total transparency as somewhere
    Trust has to set in the Procurement process.
  • What all the layers of Transparency can reveal,
    a single coat of mistrust shall wipe out.

22

Thank you
By A.K.Goel. E.D.R.S.G.
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