Mr SK Roongta chairman of Steel Authority of India Limited has formally released Purchase & Contract Procedure – 2006, which is aimed at simplifying SAIL’s purchase and contract procedures to facilitate the timely completion of projects that are being undertaken as part of its massive Rs. 37,000 crore growth plan. It is envisaged that the procedure will bring more transparency, clarity, flexibility and speed into SAIL's purchase and operating contracts.

The revised PCP-06 manual has been prepared by the company's vigilance department and is designed to function as an umbrella procedure for handling all kinds of purchases and operating contracts. The procedure aims at meeting the expectations of internal and external customers, transparency requirements, improving the speed of decision making, instilling confidence amongst the decision taking authorities.

Features of PCP-06 include flexibility in tendering process, earnest money deposit and payment terms, inclusion of reverse & forward auctioning, small value purchase, acceptance of bid through fax & E mail.

The last purchase manual of SAIL was published in the year 2000 and required revision in view of the experience gained during the intervening years, changes in market dynamics and supplier behavior, increase in competition in the steel sector, technological advancements in e-commerce, various instructions issued by Central Vigilance Commission etc.