Bengal govt bars repeated contract extensions, mandates fresh tenders before expiry
Kolkata, July 15
In a move aimed at strengthening transparency and financial discipline in government functioning, the West Bengal government has directed all departments and public bodies to stop repeatedly extending contracts awarded to the same agencies and instead invite fresh tenders before existing contracts expire.
A government statement said on Wednesday that extending the term of the same agency repeatedly after the expiry of the contract will not be allowed anymore.
According to the statement, Chief Secretary Manoj Kumar Agarwal issued a circular on the issue earlier this week, reminding all government departments to follow this rule. This will apply not only to government departments, but also to panchayats, municipalities and even state-owned companies. This is likely to speed up government work, tighten rules and regulations and bring financial discipline.
According to the circular, "It has been observed that Government Departments and Offices under their administrative control repeatedly seek approvals from the Finance Department for extensions of contracts with agencies engaged by them for various purposes. Some authorities have even been approving these extensions without prior consultation with the Finance Department. Such practices constitute a violation of established financial discipline and compromise the integrity of the competitive bidding process."
The circular further said, "Procuring authorities must initiate the process of floating fresh tenders for selection of agencies no later than 3 (three) months prior to the expiry of the existing contract. Heads of the Departments will hold monthly review of all existing contracts. List of contracts will be shared with the Finance Department."
The circular continues, "Proposals for extension or renewal of existing contracts will not be entertained under any circumstances and cannot be fait accompli due to lack of timely due diligence. Any unauthorised extension of contracts or delay in initiating fresh tenders will be viewed as a serious breach of financial discipline and be dealt with accordingly."
"This directive shall also be applicable for the Local Bodies, State Public Sector Undertakings (PSUs), Statutory Bodies and other parastatals. Heads of Departments/ Subordinate Offices shall be personally responsible for ensuring strict compliance with these directives within their jurisdictions," the statement concluded.
Officials said the government had observed a growing trend of departments repeatedly extending contracts and, in many instances, forwarding files to the Finance Department at the last moment for approval. There were also cases where departments extended contracts on their own without prior clearance from the Finance Department. The new directive seeks to put an end to such practices.
According to a section of the administration, repeatedly using the same organisation for work defeats the main purpose of competitive bidding. As a result, questions arise about the quality of the work, and other organisations are deprived of the opportunity to participate in government work.
— IANS
Reader Comments
As someone working in procurement, this is a much-needed reform. The previous system was ripe for cronyism and inefficiency. However, implementation will be key—will the departments actually start tenders three months in advance? That requires serious administrative discipline.
Good move but I'm skeptical. How many times have we seen such circulars gather dust? The real test will be if they actually penalize departments that violate this rule. Also hope this doesn't lead to delays in essential services if tenders aren't completed in time. 🤔
As a small contractor from North Bengal, this is encouraging news. Earlier, big players would keep getting extensions and we never got a chance. Now at least there will be fresh tenders where smaller firms can compete. Bahut achha hai yeh! 👏
This is textbook good governance. The fact that they explicitly mention "fait accompli" tactics shows they know exactly how the system was being gamed. But I wonder if this will actually reduce corruption or just move it to the tender evaluation stage. Let's see.
As a taxpayer in Bengal, I'm happy about this. But one concern: will this slow down critical infrastructure projects? Sometimes extensions are needed for ongoing work. The three-month advance tender rule might be too rigid for complex projects. Hope they have some flexibility for genuine cases.
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