Sustainable Public Procurement: Towards a lowâcarbon economy

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20 Sustainable Public Procurement: Towards a low carbon economy It was planned that in the next six months the team would hold consultations with the DGSD and BEE. The rationale for deferring the DGSD involvement for the second half of the project year was that it is an office formulating policies and procedures pertaining to public procurement and there is merit in engaging with them at a stage when the activities scheduled for first six months have been completed and a possible role for the DGSD has been identified and discussed with the procuring agencies and the BEE. The interactions with BEE in the later six months were expected to be with respect to understanding what it takes to adopt energy efficiency as a measure within the procurement system and the possible ways forward. Capacity Builders During our consultations the issue of capacity of procuring officials emerged prominently. It was learnt that often, procuring mangers, supply chain managers, or even project managers and technical personnel were imparted training on procurement related aspects, either in-house or by specialised institutes outside. It was realised that there was need to consult with the trainers who are preparing the management to face the challenges of efficient procurement and see how prepared is the industry to learn about sustainable public procurement. Therefore, we consulted organizers of training programmes and capacity building for supply chain management and green procurement for officials from private companies, public sector undertakings, government departments and ministries. These were the Indian Institute of Materials and Management (IIMM), Administrative Staff College of India (ASCI) and SP Jain institute of Management (SPJIM). Financiers Energy efficient business is particularly dependent on prevailing local economic institutions because of strong requirements in specialization, efficient packaging and financial intermediation. 5 Typically unless enterprises use their own funds, most purchases/ investments involve some form of financial intermediation. However, for energy efficiency to be incorporated as a criterion for financing at the stage of procurement, there will have to be extensive interaction of financing institutions as well as technical experts with the procurers and suppliers / service providers and this entails higher transaction costs which may have to be borne by the financing agencies as part of their overall 5 Taylor et al (2008) 51pp T E R I Report No. 2007GL01
21 Sustainable Public Procurement: Towards a low carbon economy responsibility to “create” markets for energy efficiency investment. 6 After completion of the first round of stakeholder consultations with the procurers and regulatory agencies, it was hoped that consultations with some financing institutions [State Bank of India (SBI), Industrial Development Bank of India (IDBI) and Yes Bank] also would help the project gain insight into the role of financing in promoting energy efficient procurement choices. Suppliers It emerged from our early stakeholder consultations that SPP practices are dependent on various factors including supply choices. Therefore, we felt the need to engage with some suppliers as well in order to understand how, if at all the demand for energy efficient products during procurement, gets reflected in their manufacturing process. Although, we had scheduled such a consultation for a later date, we discussed with three of our stakeholders from procuring agencies viz., BHEL, ConCor, and NTPC, their role as suppliers in a SPP chain. Structure of the report For the ECBC case study, it was noted that most of the Public sector entities do not carry out construction activities (buildings) themselves, but sub contract this work to outside agencies. However, with respect to its level of uptake and possiblity of using as a tool for SPP, during our initial consultations we were informed that few companies have indeed shown interest and commitment towards adopting ECBC in their new buildings. Therefore, besides interviews with experts in BEE, Ministry of Environment and Forest, Green Rating for Integrated Habitat Assessment (GRIHA), Leadership in Energy and Environmental Design (LEED), represenstatives from PSUs like Oil and Natural Gas Corporation (ONGC) , Oil Industry Development Board (OIDB), NBCC, Delhi Metro Rail Corporation (DMRC), National Thermal Power Corporation (NTPC), Housing and Urnban Development Corporation (HUDCO), Central Public Worksd Department (CPWD), MMTC, Steel Authority of India (SAIL) and Engineers India Limited (EIL) were identified for interview. Findings from the research and consultations within the first six months of the project have been discussed in this report as per the following scheme of chapters: 6 Taylor et al (2008) T E R I Report No. 2007GL01
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