Eprocurement ON INDIAN RAILWAYS

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E-Procurement on Indian Railways
Strategy , Scope Issues
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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.

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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.

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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.

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Purchase source wise

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

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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.

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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.

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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
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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

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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 .

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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.

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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.

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Recommended E-Forms

• EGP application has following essential
  components
• Interactive commercial offer form.
• Compliance statement form .
• Deviation form .
• Performance eligibility form .
• Attachments.

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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
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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
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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.

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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.

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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.

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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.

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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.

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