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Current GPP/SPP state of play and impact of international projects in India - Prasad Modak
1. Current GPP/SPP state of play and
impact of international projects in
India
Prasad Modak
Chairman, Green Purchasing Network India
2. Public procurement in India
• Large and growing component of public
spending
• Massive infrastructure projects
• At state level, procurement is a mosaic –
multiple systems running at the same time.
• No professional cadre – no specialized
training
• Share of public procurement in GDP in
India – 20%(?)
Public procurement, also called
Government procurement or
public tendering, is the
procurement of goods and
services on behalf of a public
authority, such as a
government agency.
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3. Even with an absence of coherent policy, GPP/SPP
exists in India!
• Rule 137 of the GFRs articulates the
fundamental principles of public
purchasing that Government
Ministries and Departments provide:
– Adequate information and
announcement;
– Non-discriminatory practices to
provide equality of opportunity,
transparency in bidding, as well as in
the evaluation process;
– Accountability; and
– Non-restrictive bidding conditions to
unlock the particular market
• The businesses in India abide with the
International /Agreements ratified and
this reflects in the Products
• Non restrictive practices such as the ILO
conventions are ratified by India and
translated into the Indian Legislative
system
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4. Policies Promoting GPP
• Encouraging hand spun and hand woven textiles (khadi) products
• Specialized system of reservations for handloom sectors
• For notified products, products from Small Scale Industries are preferred
• Protection is provided to the domestic industry in recognition of high costs, like
input costs, interest rates, etc.
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• This is a reflection of the primary policy of the government to provide for financial
and infrastructural support to the handloom and the small-scale sectors.
• Both these sectors, are rated highly in terms of social performance, since they
employ a high percentage of labour and are arguably sustainable in terms of their
energy usage.
• This kind of a reservation system therefore has a positive impact on sustainable
procurement by the Indian government
5. Driving forces in augmenting the agenda of GPP in
India
• Pollution Prevention / Cleaner
Production Focus
– Policy framework has been developed
to complement the legislative
provisions
– National Conservation strategy and
Policy Statement on Environment
– Product oriented regulations are in
the horizon
– The Government has initiated efforts
in identifying Green Product
Manufacturers
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6. Driving forces in augmenting the agenda of GPP in
India
• National Action Plan on Climate
Change (NAPCC) has been notified
– Stress on demand-side management
in the use of energy and natural
resources in consumption sectors
(Energy Efficiency)
– Emission reduction in the production
sectors contingent on transfer of new
technology and finance (Cleaner
Technology)
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7. Driving forces in augmenting the agenda of GPP
• Energy Conservation
– Energy performance standards and
labelling for equipment and
appliances already is in place
– BEE is empowered to prohibit
manufacture or sale or purchase or
import of specified equipment or
appliance unless such equipment or
appliance conforms to energy
consumption standards
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- Public procurement for designated products specify energy
efficiency rating requirements
8. Progress of GPP / SPP in India
8
2007
2008
2009
2012
PM’s Council on
Climate Change
suggest GPP
guidelines
Multi-stakeholder
consultation on GPP
guidelines
MoEF establishes
Committee on GPP
guidelines
Committee on GPP
submits
recommendation to
MoEF
9. International Influences in the Process
• Japanese model of GPP felt as the best fit
• EMC’s work with Gov of Mauritius – GPP system for 5 products
• Experiences from other countries also fed into the development of GPP
guidelines in India – Led by CII
– European Union, China, Brazil, etc.
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10. GPP Product List Developed
• Paper
• Pharmaceuticals (basic drugs)
• Electrical Appliances (coolers/
generators/ water heaters)
• Water Coolers & Purifiers
• Public Works (cement/ bricks/ steel)
• IT equipment (computers and
peripherals/ photocopier)
• Office Furniture
• Lighting
• Mobile Phone
• Criteria used for product selection
– Products which are low hanging fruits
– High purchase product categories
within government procurement
(both quantity and value)
– Products, where initiatives towards
greening have already been
undertaken
– Products, where technology is
already established
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11. Product Criteria
Paper Water Consumption benchmarks, ECF
Public Works Cement: Energy Consumption levels, particulate matter, CO2 emissions,
blending of fly ash and blast furnace slag
Steel: Thermal energy consumption levels, dust emissions, CO2 emissions,
water consumption, use of slag
Bricks: Fly ash content, perforation area, cleaner/ gaseous fuels
IT Equipment Environmental attributes around product categories, product packaging, end-
of use services, supply chain responsibility and organisational performance
Mobile Phones Technical specifications around materials, plastic case parts, flame retardants,
consumer information, power consumption for chargers, active efficiency
Electrical
Appliances
Technical Specifications around various aspects such as energy efficiency,
power consumption, disassembly, etc. 11
12. Product Criteria
Water Coolers &
Purifiers
Technical Specifications around various aspects such as energy efficiency,
recyclability, disassembly, etc.
Lighting Technical Specifications around various aspects such as energy efficiency,
packaging, hazardous substances, weight, recycling and disposal, lifetime
reliability
Office Furniture Technical Specifications around various aspects such as hazardous substances,
plastic parts, VOC limits, etc.
Pharmaceuticals
(basic drugs)
Guidelines around calculation of yields, expiration dating, stability testing
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13. Facilitation by UNEP and GIZ
• Green Public Procurement for Indian Railways – Workshop and preparation of a
Road Map.
• Forthcoming training activities for DGS&D (Directorate General of Supplies &
Disposals)
• GPNI Involved
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14. Green Retail Project- Switch Asia
• Green Retail is a 4 year project (Feb 2013 – September 2016) supported by the
European Union (EU) under the SWITCH Asia Programme.
• Targeted at the Indian Food & Beverage Retail sector in 4 major cities in India
(Mumbai, Bangalore, National Capital Region Delhi Chennai).
• The project aims at facilitating the switch to resource efficient practices in
retailers’ operations , greening the retail supply chain (focus on MSMEs), and
contributing to the evolution of green consumers. The project will result in
improved resource efficiency, waste and water management, energy efficiency,
cleaner production and sustainable consumption.
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17. Low Carbon Goods and Services – Analytical Work
• Planning Commission and Prime Ministers Office
• CII – Sectoral study
• CII and Boston Consulting – India Green Manufacturing
• Interest from Government of UK
• How Green are Low Carbon Goods?
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18. GPNI’s Common Core Criteria(CCC)
Research
Review of sustainability criteria of
over 150 multi-attribute ecolabels
Analysis
Analytical distillation of criteria
Harmonization of Criteria
Outcome
Proposition of 8 Common Core
Criteria
Use of CCC to develop product-
specific criteria
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20. Compliance to env.
Regulations and
Standards.
Resource
Conservation and
Efficiency
Exclusions and
Preferences
Biodegradability
& Recyclability
Conservation of
Biodiversity
Presence of an
EMS
Social Inclusion
Reporting &
Responsible
Disclosure
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23. Developed under funding from the
Ministry of Environment (MOE),
Japan
Global Enviro-Legal Portal (GELP)
Supported by Japan Environment
Association (JEA) and the
International Green Purchasing
Network (IGPN)
Implemented by the Green
Purchasing Network India
24. What is GELP?
Distilled, Organized , Abstracted and
Searchable Database
Self-Assessment Feature with
Automatic Report Generation
Expert Support with Option to Support
Product-Specific Q&A
SEARCH
VIEW
RATE
COMPA
RE
MY
ACCOUNT
MY
FAVORITES
NOTES
SUPPLIER
RECENT UPDATES
ASK AN EXPERT
SUPPLIER
EXPERT
FAQ
Q
A
Rating
SUPPLIER
ADVICE ON
COMPLIANCE
ISSUES
SELF-ASSESSMENT FORMS
25. Provide support to SMEs to meet national as well as market based
requirements on environmental compliance
Provide support to Multinational Corporates operating global supply
chains in achieving environmental compliance related to their products
Establish a dynamic platform for updation, distillation and distribution of
content on enviro-legal areas
Promote knowledge networking and expert dialog to create a partnership
between various regional and international “players” involved in
improving environmental performance of supply-chains
What can GELP do?
26. Portal ready and deployed
Tested for site integrity
Contents developed and
uploaded for Pilot testing
27. GELP: Way forward
Updation of content, operationalization and site
maintenance
The content on the portal needs to be updated
continuously.
Also a pool of Experts need to be drawn for
operationalizing Module B & C.
The software part of the portal need to kept
functional at all times
Pilot Testing:
Focus on a couple of important sectors such as
Textile and Electrical and Electronics
28. GELP: Way forward
Workshop on building partnerships amongst
GPNs:
GPNs as national focal points for GELP
GPNs as local Experts
GPNs as national communicators on GELP
GPNs as local content creator
GPNs run country level pilots
Communication and marketing Kit
Manual for User, Manual for Expert, Manual for
Admin, Announcement and Brochures,
Advertisements in the form of Posters and
Billboards as well as Tools for Direct Marketing
such as Emails, Presentations and Planning for
Launch Workshops
29. GELP: Way forward
Develop a business model for GELP
Business model to make GELP self sustainable over a period of time.
Plan should also help in building partnerships between GPNs
Plugging of the payment gateways
E-commerce solution design
Payment methods
Security
Revenue sharing mechanism
Image for representation purpose only
30. GELP: Way forward
Creating required legal documentation
Privacy Policy
Terms and Conditions
Contract Agreements
Terms of Reference
Copyright Issues
31. Conclusions
• While India has no ‘defined’ GPP process, the various tenets of GPP gets reflected
in the existing Public Procurement processes
• The Public Procurement Governance exists with high level of implementation &
transparency
• Equality and diversity in supply chains is addressed in the Public Procurement
processes
• International developments has impacted the GPP development process in many
ways
• Carbon considerations coming in through introduction of Energy Efficiency
measures – expanding to Low Carbon Goods – National priority
• A lot needs to be done – right from Policy, Legislation, Standards to awareness
creation
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