State govts should bring in public procurement law: Moily

Chennai:

The state governments should follow the Union government in bringing in public procurement bill to bring in transparency

In its transactions, according to Union Minister for Corporate Affairs Veerappa Moily.

Reacting to queries by reporters on the sidelines of India Corporate and Investor Meet 2012 here on Tuesday, Moily said the Centre has drafted the Public Procurement Law to ensure transparency in its dealings and the state government should follow it.

The new legislation proposes to bring all government purchases under regulation except procurement in cases of a natural disaster or in the interest of national security.

He also said the International Financial Reporting Standard will come into place only when the Direct Tax Code comes into being and he expected the Companies Bill to be passed this session.

Admitting aberrations in the 2G licences, he said the investment would not be hit following the Supreme Court cancelling 122 licences. “Business vibrancy is good. It will pick up now,” he added.

He also said the National Competitive Policy is at the nascent stage and once it is implemented it will usher in productivity and curb inflation. The policy will be a connect between supply chain and demand, said Moily.

Earlier, Moily hailed Tamil Nadu’s corporate citizenship culture. “Corporate citizenship whether it is in Tamil Nadu or Gujarat be it previous regime or in this government, it is best in India,” he added.

Tamil Nadu governor Rosaiah said that the concern of today’s corporate or a small investor is that of confidence levels and the country needs lot of investors who need to be told and educated on how to make an informed investment decision.