Monday, December 31, 2018

Sustainable Procurement Task Force: India is in the Game


Finally, it happened in 2018! Engagement with the Ministry of Finance over the last couple of years paid off and we now have a Sustainable Procurement Task Force. My engagement in the process began some two years back when my suggestions on making enabling provisions for integrating sustainability in procurement process were accepted and was incorporated in the Manual for Procurement of Goods 2017. It picked up momentum when I was requested to make a presentation before Secretary/Expenditure, Ministry of Finance, Government of India, on 22nd February 2018. Sensing the huge opportunity for scaling up sustainable procurement policy in India, and barely able to contain my excitement, I immediately began fine-tuning my slides. It was almost done when I was informed that my presentation has been rescheduled to 28th Feb, 2018. This was hardly a surprise, in fact, I was almost anticipating it; but it still managed to bring my enthusiasm down several notches. With the second postponement, this time to 7th March, a distinct sense of déjà vu was creeping up on me. It was important for me to continue feeling positive, so keeping my belief firm in ‘whatever happens, happens for the best”, I utilized the time to crystalize my thoughts and review my slides. I also got them reviewed by colleagues and friends, which not only led to some new insights but also endorsed those that I was proposing.


Come 7th March, I was well on time in Fresco Hall, Ministry of Finance, waiting for the Secretary to arrive. The focus of my presentation was building up a business case for embedding sustainable procurement policy in India. I underscored the fact that enabling provisions brought out by the Ministry in the General Financial Rules 2017 and the Manual for Procurement of Goods 2017 would remain on the shelf unless we create an enabling ecosystem for implementing provisions on the ground. In my concluding slide, I presented a Sustainable Procurement Implementation Framework and recommended to constitute a Sustainable Procurement Task Force, which would be the first building block for pan-India SPP implementation.

My 30 minutes presentation was followed by a brief discussion of about the same duration, and was chaired by the Secretary/Expenditure and attended by a few officials from the Ministry of Finance (MoF) and Ministry of Environment Forest and Climate Change (MoEFCC), and Head, UN Environment India. During the discussion, the Secretary agreed with my recommendation to form a Sustainable Procurement Task Force and suggested the formation of a lean and agile Task Force. To say that I was thrilled by his assurance would be an understatement! It was for the first time, after years of advocacy, that such an assurance was forthcoming and that too from an official of such high stature. Thanks to his commitment and support by ministry officials, the notification regarding constitution of the Task Force was issued on 19th March, 2018.


This was a significant leap forward in the history of implementation of sustainable procurement policy in India in many aspects. To begin with, it was the first time that the Ministry of Finance, the custodian of public procurement policy in India, had come forward to take the onus for implementation of sustainable procurement policy in India. Secondly, the whole process had top management support, as the Secretary himself chaired the meeting and gave the green signal for constitution of the Sustainable Procurement Task Force. Thirdly, the decision to move forward on sustainable procurement itself has a wider repercussion for policy making in India considering the cross cutting nature of public procurement. Most significantly, it is probably the first time that discussion around integrating sustainability in public policy has moved outside the MoEFCC and is being championed by the MoF. Successful implementation of sustainable procurement policy in India has wider ramifications for South Asian countries. It would encourage other countries in the region to embrace sustainability in procurement decisions.  

Since the constitution of the Task Force, it has met five times. The Task Force, during its meetings, has invited industry chambers, private sectors, experts from specific fields, and others to solicit their views and opinions on resolving challenges for adaptation by practitioners. Serving a dual purpose, the interaction also acts as a sounding board for industries to look out for things to come in the future.

The path ahead is of course very challenging. The biggest challenge before the Task Force is to come up with a National Action Plan that can serve as a core strategy to coordinate and align activities of different stakeholders, as well as provide a legal framework for action. Another major challenge is to understand risks and opportunities associated with different spend categories, prioritize product categories and then focus efforts and resources on these categories to maximize sustainability outcome. The Task Force is fully geared to address all these challenges in a systematic manner. It has been trying to tie up with different institutions to carry out these activities and work out financing mechanism for supporting implementation strategy. Hope we will hear some official communique in the New Year.

2018 has undoubtedly been a momentous year for SPP community, in general, and Sustainable Procurement in India, in particular. Not only do we have a Task Force, we have a functioning Task Force, which believes in the power of procurement to transform the market for a greener and equitable world. I have huge hopes for 2019. Watch this space for more good news in the coming months. On this positive note, I wish you all a very Happy New Year 2019!