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Indian Government has finally made the e-Procurement system mandatory in all government departments of the country. All government departments have started procuring electronically for transactions above INR 2.5 million.

The Union Government has decided to manually accept tenders until June 30, 2007 to allow suppliers a grace period to shift to an electronic platform in all departments. This initiative is part of the National e-Governance Plan (NeGP), which will reduce transaction costs and maintain transparency between the government and citizens. Larger ministries like defence, railways, petroleum, telecom and food are developing their own e-Procurement programmes.

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