Government has introduced a Bill in the Lok Sabha to ensure transparency in public procurement. The bill titled “Public Procurement Bill-2012” was introduced in the House by the Finance Minister Pranab Mukherjee yesterday.

It seeks to regulate award of government contracts of over fifty lakh rupees. The objective of the Bill is to ensure fair and equitable treatment of bidders promoting competition, enhancing efficiency and economy and maintaining integrity and public confidence in the procurement process. The Bill also provides a jail term ranging from six months to five years for public servants found guilty of demanding and accepting bribes from bidders of government contracts.

The Union Cabinet approved draft of the Bill on Thursday last. Our correspondent adds this will become an over reaching legislation governing public procurement by the central government and central PSUs.