Integrity Pacts have been applied to oversee various levels of public procurement in India since 2006. In that year, the Indian Oil and Natural Gas Corporation implemented the first IP in India. In the same year, the Indian Ministry of Defence adopted the Defence Procurement Procedure made the use of an Integrity Pact mandatory for all defence procurement above USD 15 Million.
In 2007, India’s Central Vigilance Commission (CVC) adopted a circular recommending the use of IPs in all major procurement of Public Service Undertakings (PSUs).
In 2009, the Prime Minister also recommended the use of Integrity Pacts to oversee public procurement and the CVC issued Standard Operating Procedures for the use of IPs for the first time.
By 2011, several municipalities in India began to use IPs. In the same year, additional regulations were adopted by the Ministry of Finance and Government of India expanding the use of IPs.
In 2015, the CVC issued an order requiring the use of IPs by public sector banks, insurance companies and financial institutions. In 2017, the CVC issued its latest version of the IP Standard Operating Procedures.
As of 2015, TI-India estimated that over 95 state-owned enterprises and several municipalities had adopted IPs to oversee their public procurement. Around half of the SOEs had entered some arrangement, or Memorandum of Understanding, with TI-India for their assistance with the IP. Where TI-India is not involved, the PSUs must appoint independent external monitors who are vetted by the CVC and who are individuals of upstanding moral integrity.
TI-India and others have observed both important contributions that the use of IPs has made to public procurement practices in India, as well as numerous limitations to the IPs. Any number of sample Integrity Pacts in a wide range of industry sectors can be easily found online.
Last updated: 01.03.2021
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