Procurement – Delhi Hospitals Told to Buy Medicines Directly After CPA Functions Suspended

Procurement – Delhi government hospitals will temporarily handle their own procurement of medicines, medical equipment and other healthcare supplies after the government suspended the procurement functions of the Central Procurement Agency (CPA), according to an official order. The arrangement will remain in force until a revised procurement system is introduced.

The decision affects the centralised purchasing mechanism used by government healthcare institutions across the national capital. Hospitals have now been asked to manage their requirements independently through their respective heads of department while following the prescribed financial and procurement rules.

Pending CPA Tenders Cancelled

As part of the interim arrangement, all tenders started by the CPA that are still pending or incomplete have been cancelled. The cases will be sent back to the hospitals concerned so that they can take further action under the applicable procurement procedures.

The government order also questioned the process through which centralised procurement was introduced last year. According to the document, the system was brought in through government orders issued in June, but the policy decision should have been placed before the Council of Ministers in accordance with the Transaction of Business Rules.

The CPA, which was established in 1994, has traditionally handled the purchase of medicines and surgical consumables for institutions run by the Delhi government.

Hospitals to Follow Existing Procurement Rules

Under the temporary system, hospitals will independently purchase medicines, surgical consumables, medical equipment and other healthcare-related commodities. The procurement process will have to comply with the General Financial Rules, guidelines of the Government e-Marketplace (GeM) and other relevant regulations.

The order clarified that existing rate contracts and procurement agreements will remain operational until they either reach their expiry date or are terminated in accordance with the applicable terms.

Hospitals have also been instructed to ensure the availability of essential medicines through direct procurement. This arrangement will continue until the CPA completes the process of establishing rate contracts for those medicines.

Decision Follows Probe Into Medical Supplies

The government’s decision comes against the backdrop of an Anti-Corruption Branch case concerning allegations that substandard medical and surgical consumables were supplied to Delhi government hospitals.

Health Minister Pankaj Singh had earlier asked the Health Department to submit a detailed report on the matter. Particular attention was sought on the 13 supplier firms named in the case and the action taken against them following the allegations.

The minister also sought clarification on whether the firms had faced blacklisting or debarment proceedings and what steps had been taken by the department in response to the case.

Questions Raised Over Further Purchases

The Health Department was also asked to provide details of any contracts, purchase orders or payments involving the firms after the Anti-Corruption Branch case was registered.

In addition, the minister sought information on whether any departmental proceedings had been initiated against officials or other parties in connection with the matter.

The latest order therefore places responsibility for immediate procurement directly with individual government hospitals while the Delhi government works on a new framework for centralised purchasing. The existing contracts will continue according to their terms, while hospitals must ensure that essential medicines and other critical supplies remain available during the transition.