The Uttar Pradesh government has introduced new procurement rules to enhance transparency in tender processes, mandating e-tendering for all government contracts. Aimed at curbing corruption and ensuring fair bidding, the rules include stricter vendor disclosures and real-time monitoring. These reforms, effective from August 2025, are expected to streamline public procurement and boost accountability across departments.
UP Bolsters Procurement with Transparent Tender Rules
The Uttar Pradesh government has rolled out a comprehensive set of procurement reforms to ensure transparency and accountability in its tendering processes. Effective from August 2025, the new rules mandate the use of the state’s e-tendering portal, etender.up.nic.in, for all government contracts, aligning with India’s broader push for digital governance. The initiative aims to eliminate irregularities, curb collusive practices, and foster competitive bidding.
Under the new framework, all tenders must be processed through the e-procurement system, which incorporates digital signatures and encrypted data to secure transactions. Each stage of the tender process, from bid submission to the issuance of the letter of award, is time-stamped and accessible only to authorized users. This move builds on the success of earlier e-procurement systems in states like Tamil Nadu, where mandatory online tendering has reduced human interference since 2023.
A key feature of UP’s rules is the emphasis on vendor transparency. Contractors, including those with foreign affiliations, must disclose detailed information about their supply chains, board members, and commission structures. Firms with foreign investors holding more than 15% stake are required to provide additional declarations, a measure inspired by the Centre’s procurement manual updates in May 2025. This ensures that the state can track the origin of goods and services, reducing the risk of cartelization and favoritism.
The rules also introduce stricter penalties for non-compliance. Vendors found engaging in collusive bidding or submitting false information face debarment from future tenders and financial penalties. This provision addresses concerns raised in cases like the Tamil Nadu transformer procurement scam, where collusive bidding led to a reported loss of ₹397 crore to the public exchequer between 2021 and 2023. By implementing real-time monitoring and a contractor database with service ratings, UP aims to create a robust system for evaluating bidder performance.
The state government has also mandated that contracts below ₹100 crore, previously handled independently by departments, now adhere to the same transparency standards as larger contracts. This aligns with the Centre’s guidelines, which emphasize scrutiny for smaller contracts to prevent malpractices. Additionally, the rules promote local suppliers under the Public Procurement (Preference to Make in India) Order, 2017, by discouraging restrictive tender conditions that favor foreign firms.
To support implementation, the UP government has upgraded its e-tendering platform to comply with modern web standards, requiring users to access it via updated browsers like Chrome or Firefox. Training programs for government officials and vendors are underway to ensure smooth adoption. The reforms are expected to set a benchmark for other states, reinforcing Uttar Pradesh’s commitment to clean governance and efficient public spending.
Disclaimer: This article is based on information sourced from government announcements, e-procurement portals, and recent reports from credible news outlets like The Hindu and The Economic Times. The details reflect the latest available data as of September 2025. Readers are advised to verify specifics through official government channels for the most current updates.