RIICO and the Rajasthan Transparency in Public Procurement
(RTPP) Act, 2012
1. Introduction
Public procurement plays a vital role in the functioning of government
departments and public sector undertakings. It involves the purchase of
goods, services, and works using public funds. Given the scale and impact
of such procurement, transparency, fairness, and accountability are
essential to ensure efficient utilization of public resources and to prevent
corruption and favoritism.
The Rajasthan Transparency in Public Procurement Act, 2012
(RTPP Act, 2012) was enacted by the Government of Rajasthan to
establish a transparent, fair, and competitive procurement system. The
Act lays down principles, procedures, and mechanisms governing public
procurement in the state.
The Rajasthan State Industrial Development and Investment
Corporation Limited (RIICO) is a government company engaged in the
development of industrial infrastructure and promotion of investment in
Rajasthan. In the course of its operations, RIICO undertakes extensive
procurement activities such as construction of industrial areas,
development of roads and utilities, consultancy services, and purchase of
goods and services.
As a public sector undertaking and a procuring entity, RIICO is required to
comply with the provisions of the RTPP Act, 2012. This chapter examines
the relationship between RIICO and the RTPP Act, highlighting the
applicability, procurement process, objectives, benefits, and challenges of
implementing the Act in RIICO.
2. Overview of RIICO
2.1 Establishment and Nature of RIICO
The Rajasthan State Industrial Development and Investment
Corporation Limited (RIICO) was established in 1969 as a government-
owned company under the Companies Act. It functions as the nodal
agency of the Government of Rajasthan for industrial development.
RIICO is classified as a government company, with the majority of its
shareholding held by the State Government of Rajasthan. It operates on
commercial principles while fulfilling developmental objectives.
2.2 Objectives of RIICO
The key objectives of RIICO include:
Promotion of industrial growth in Rajasthan
Development of industrial areas and estates
Provision of industrial land and infrastructure
Facilitation of domestic and foreign investment
Implementation of state industrial policies
Balanced regional development
2.3 Procurement Activities of RIICO
To achieve its objectives, RIICO undertakes large-scale procurement,
including:
Construction of roads, drainage, and industrial sheds
Development of water supply, power, and utilities
Hiring of consultants, architects, and engineers
Purchase of machinery, equipment, and office supplies
Outsourcing of services
These procurement activities involve substantial public expenditure,
making compliance with the RTPP Act, 2012 essential.
3. Overview of the RTPP Act, 2012
3.1 Background and Need for the Act
Prior to the RTPP Act, public procurement in Rajasthan was governed by
various rules, departmental guidelines, and executive instructions. This
led to:
Lack of uniformity in procedures
Limited transparency
Scope for arbitrariness and corruption
To address these issues, the Government of Rajasthan enacted the
Rajasthan Transparency in Public Procurement Act, 2012, which
came into force to regulate procurement by public entities.
3.2 Objectives of the RTPP Act, 2012
The main objectives of the Act are:
To ensure transparency in public procurement
To promote fair and open competition
To achieve value for money
To prevent corruption and favoritism
To ensure equitable treatment of bidders
3.3 Applicability of the RTPP Act
The RTPP Act applies to:
State Government departments
Local authorities
Statutory bodies
Government companies and PSUs
Since RIICO is a government company, it clearly falls within the scope of
the Act and is required to follow its provisions.
4. RIICO as a Procuring Entity under RTPP Act
4.1 Meaning of Procuring Entity
Under the RTPP Act, a procuring entity is any government body or
organization that undertakes procurement using public funds.
RIICO qualifies as a procuring entity because:
It is owned and controlled by the Government of Rajasthan
It undertakes procurement for public infrastructure projects
It uses government and public funds
4.2 Responsibilities of RIICO under the Act
As a procuring entity, RIICO is responsible for:
Planning procurement efficiently
Ensuring transparency at all stages
Adopting fair and competitive bidding procedures
Maintaining proper records
Ensuring compliance with the Act and rules
5. Principles of Procurement under RTPP Act and RIICO
The RTPP Act lays down certain fundamental principles that guide
procurement. RIICO must adhere to these principles in all its procurement
activities.
5.1 Transparency
RIICO must ensure that:
Procurement information is publicly available
Tender documents are clear and comprehensive
Evaluation criteria are disclosed in advance
5.2 Fairness and Equal Treatment
All bidders must be treated equally. RIICO cannot:
Discriminate against any bidder
Impose arbitrary conditions
Favor specific contractors
5.3 Competition
The Act encourages maximum competition. RIICO must:
Avoid restrictive tender conditions
Encourage participation of eligible bidders
Use open competitive bidding wherever possible
5.4 Economy and Efficiency
RIICO must ensure:
Optimal use of public funds
Cost-effective procurement
Timely completion of projects
6. Procurement Process in RIICO under RTPP Act
6.1 Procurement Planning
RIICO prepares procurement plans identifying:
Nature of work or goods required
Estimated cost
Mode of procurement
Time schedule
6.2 Invitation of Bids
RIICO invites bids through:
Open competitive bidding
Limited bidding (where permitted)
Single source procurement (in exceptional cases)
Bid invitations are published through official portals and notifications to
ensure wide publicity.
6.3 Tender Documents
Tender documents prepared by RIICO include:
Scope of work
Eligibility criteria
Technical specifications
Financial terms
Evaluation method
6.4 Submission and Opening of Bids
Bids are submitted electronically or physically as prescribed. The opening
of bids is conducted in a transparent manner, often in the presence of
bidders’ representatives.
6.5 Evaluation of Bids
RIICO evaluates bids based on:
Pre-disclosed technical criteria
Financial evaluation methods
Responsiveness to tender conditions
The evaluation process must be objective and documented.
6.6 Award of Contract
Contracts are awarded to the bidder who:
Meets eligibility and technical requirements
Offers the most economically advantageous bid
The decision is communicated transparently to all bidders.
7. E-Procurement and RIICO
The RTPP Act encourages the use of e-procurement systems to
enhance transparency.
RIICO uses e-procurement platforms to:
Reduce human interference
Increase accessibility
Improve efficiency and record-keeping
E-procurement also minimizes the risk of manipulation and delays.
8. Grievance Redressal Mechanism
8.1 Right to Appeal
The RTPP Act provides bidders the right to:
Seek clarification
File complaints
Appeal against procurement decisions
8.2 Role of Appellate Authorities
Designated authorities review complaints and ensure:
Fair hearing
Timely resolution
Corrective action, if required
This mechanism enhances accountability in RIICO’s procurement process.
9. Transparency and Disclosure Requirements
RIICO must disclose:
Tender notices
Bid evaluation results
Contract awards
Reasons for rejection of bids
Such disclosures strengthen public confidence and reduce disputes.
10. Record Maintenance and Audit
10.1 Record Keeping
RIICO is required to maintain:
Procurement documents
Evaluation reports
Contract agreements
Payment records
10.2 Audit and Oversight
Procurement activities of RIICO are subject to:
Internal audit
Statutory audit
CAG audit
Compliance with the RTPP Act helps RIICO avoid audit objections.
11. Benefits of RTPP Act for RIICO
The RTPP Act benefits RIICO by:
Standardizing procurement procedures
Reducing legal disputes
Enhancing credibility and trust
Improving efficiency and cost control
Ensuring compliance with government policies
12. Challenges in Implementing RTPP Act in RIICO
Despite its advantages, RIICO faces certain challenges:
Complex procedural requirements
Delays due to compliance formalities
Need for continuous training of officials
Resistance to change from traditional methods
13. Role of RTPP Act in Preventing Corruption
The Act minimizes corruption by:
Limiting discretion
Ensuring transparency
Providing grievance redressal
Mandating documentation
This is especially important for large infrastructure projects handled by
RIICO.
14. Relationship between RIICO, RTPP Act, and Good Governance
Compliance with the RTPP Act promotes:
Good governance
Ethical procurement practices
Responsible use of public funds
For RIICO, this strengthens its role as a credible industrial development
agency.
15. Conclusion
The Rajasthan Transparency in Public Procurement Act, 2012 is a landmark
legislation aimed at reforming public procurement in the state. As a
government company and a major procuring entity, RIICO is required to
strictly comply with the provisions of the Act.
RIICO’s procurement activities involve large public expenditures and long-
term infrastructure projects. By following the principles of transparency,
fairness, competition, and accountability laid down under the RTPP Act,
RIICO can ensure efficient utilization of public resources and maintain
public trust.
Although the implementation of the Act poses certain procedural and
administrative challenges, its overall impact on improving procurement
practices is significant. In conclusion, the RTPP Act, 2012 serves as a vital
legal framework guiding RIICO’s procurement activities and contributes
substantially to good governance and sustainable industrial development
in Rajasthan.