The slides recommend a framework for scaling up sustainable procurement policy in India in a time-bound manner.

1. Sanjay Kumar
DFCCIL, Ministry of Railways
Mainstreaming Sustainable Public
Procurement in India
Ministry of Finance, New Delhi, India.
Date: 07.03.2018

2. Procurement as a Strategic Function…
Tier 1 supplier
Tier 2 supplier
Waste

3. What is Sustainable Procurement ?
Sustainable Procurement
Environmental
Impacts
Social Impacts
Economic
Impacts
Inputs of natural
resources, energy and
water in manufacture,
use and disposal of
goods
Quality, Delivery time,
Cost of operation and
maintenance over the
life of the goods
Health & safety,
Working conditions ,
employment impacts
of locally produced
products
Over Life Cycle of Products, Works & Services

4. SPP in the Sustainable Development Goals

5. Life cycle thinking in procurement
Bid 1 Bid 2
Purchase Purchase
Disposal
Operation/
Use
Disposal
Operation
/ USe
COST

6. UJALA: LED Bulb Programme
Expected
Annual Energy
Saving - 105
billion KWh
GHG emission
Reduction - 77
Million Tons
per annum
Price
reduction of
LED in 18
months
Catalyse
Manufacturing
of LED in India

7. 4
Promote resource
efficiency
5
Reducing adverse
environmental and
social impacts
6 Opportunities for
MSEs and local
industries
2
Encouraging
innovation
3Make in India with
“Zero Defect Zero
Effect”
Market
The Business Case for Sustainable
Procurement
1
Securing best Valuefor money.
7
SDGs & Climate
Change Goals

8. Spread of SPP across the Globe
Source: UNDESA

9. Key Enablers for Implementing SPP
MarketLevel
OrganizationalLevel
CountryLevelPolitical
Support
Public
Procurement
Policy
SPP Policy
Framework
Voluntary
Standards &
Eco-labels
Top
Management
Support
Appetite to
adopt new
ideas
Capacity and
training of
Procurement
professionals
Availability
of greener
products
Industry
capacity to
embrace
innovation
Institutional
Mechanism
to support
SMEs

10. SPP Implementation in National Governments
Examples of Great Britain & China

11. Development of SPP Framework in UK

12. 1993 2002 2004 2005 2006 2007 2008 2009 2012 2016
China Environment
Labelling Programme
Procurement of ECPs
Regulation for
Procurement of
ELPs
Celebrated 10th
year of GPP
 Government
Procurement Law
 Cleaner Production
Law
• Circular Economy Law
• Preferential Treatment to
Resource efficient/
sustainable/ renewable
products
Development of GPP in China
• The 12th Five Year
National Programme
• An important tool for
institutional
transformation

13. Key Learning From Their Experiences
SPP is one of the
biggest reforms and
has to handled
accordingly
Countries have
invested time &
resources in
sustainable
procurement policy
Development of
sustainable
procurement policy
through Multi-
stakeholders process
Political leadership
support is critical
Environmental
Labelling is an
effective tool for
SPP implementation
Capacity Building of
of purchasing
professionals is one
of the driving force
Monitoring and
Evaluation of
Programme plays
vital role

14. • Indian Ocean
• China
• India
• Pakistan
• Nepal
• Afghanistan
• Bangladesh
• Sri Lanka
• Maldives
• Bhutan
• Myanmar
SPP Adoption in South Asian Countries
GPP under Switch Asia
Programme 2014-17
Procurement
Law 2012
 GFR & Manuals
 Eco Mark since 1991
 MSME Guidelines, 2012
 Khadi & Handloom
 BEE energy label
 E-waste management
Rule, 2016
 Battery management &
handling Rule, 2012
 Hazardous waste
management rule, 2016
National Green
Procurement Policy, 2016

15. Recent Success Story

16. But Miles to Go….!
Supply Side
Constraints
Min. Of Finance
Min. Of Env. & Forest
Min. Of Consumer Affair
Mini. Of Commerce &
Industry
Min. of MSMEs
Planning Commission
No Policy
Framework
On SPP
Lack of
Capacity/
Training of
Officials
Lack of
Institutional
Support
What is
Green?

17. Bottom Up v/s Top Down Approach
Bottom Up Approach
• Sends blurred signal to market
• Duplication of works
• Higher cost of implementation
• Market may not respond to sporadic
demands
Top Down Approach
• Sends clear signal to market
• Gives economy of scale to vendors
• Trigger competition and shift
investment
• Attune and prepare vendors for export
market

18. Way Forward for India…

19. Sustainable Procurement Task Force
Targets & Indicators
Monitoring & Review
Ecolabeland
Voluntarystandards
Training&Capacity
Building
Prioritization&
Developmentof
Specifications
Developinglinkages
withotherProgramme
Institutional
Foundation for
Sustainable
Procurement
Operational
Pillars of
Sustainable
Procurement
Successful
Implementation
of Sustainable
Procurement
Sustainable Procurement Implementation Framework
Strategy & Commitment
Sustainable Procurement Policy Action Plan

20. Launch of e-
Learning Module
Launch of SPP
Action Plan
Announcement of
Sustainable
Procurement Task
Force
July
2019
June
2019
March
2019
June
2018
June
2020
Launch of Pilot
Pan-India Roll
out
The Road Ahead…

21. Thank you for your kind
attention!
Keep in touch…
Email: sanjayviti@gmail.com
Blog: http://sustainableprocurement.blogspot.in/
LinkedIn: Asia-Pacific GPPEL Forum
FB: https://www.facebook.com/groups/ProcureGreen/