The West Bengal government has instructed all departments and public bodies to refrain from extending contracts with the same agencies repeatedly. Instead, they are now required to invite fresh tenders before existing contracts come to an end. This move aims to enhance transparency and financial discipline in government operations.
Chief Secretary Manoj Kumar Agarwal issued a circular emphasizing the need for this new directive. The circular applies not only to government departments but also to panchayats, municipalities, and state-owned companies. By implementing this rule, the government anticipates expediting work processes, enforcing regulations, and ensuring financial accountability.
The circular highlights that seeking contract extensions without floating fresh tenders violates financial discipline and undermines the competitive bidding process. It mandates procuring authorities to start the tender process for selecting agencies at least three months before the current contract expires. Additionally, heads of departments are required to conduct monthly reviews of existing contracts and share the contract list with the Finance Department.
Officials noted a concerning trend of departments extending contracts repeatedly and seeking last-minute approvals from the Finance Department. The directive aims to curb such practices and hold accountable those responsible for ensuring compliance within their respective jurisdictions. By avoiding unauthorized extensions and delays in tender processes, the government seeks to uphold financial integrity and fair competition in contracting.
According to some officials, the repetitive use of the same agency in government projects undermines the principles of competitive bidding. This practice not only raises questions about work quality but also limits opportunities for other organizations to participate in government projects.
