The government is planning to set up a professional Central Procurement Agency (CPA) for the purpose of procuring, storing and distributing health sector goods for various national programmes namely reproductive and child health programme of the Union Health and Family Welfare Ministry.

This was disclosed by Minister for Health and Family Welfare Ghulam Nabi Azad in a written reply to a question raised in Rajya Sabha on Wednesday. The CPA is proposed to be registered as a Society under the Societies Registration Act, 1860.

“The existing system of procurement and distribution is transparent. Central Procurement Agency is an initiative taken by the Ministry to further improve the existing system,” he said. The CPA is expected to keep services as prime motive. It would seek to put in place transparent and competitive system form procurement so that goods are procured at competitive rates.

The agency will set up and manage an efficient supply chain and put in place MIS to prevent stock-outs and reduction in wastage due to excess inventory. It will look to improve system of quality control so that the end-user gets quality products. Besides, the agency will have the responsibility to interact with stakeholders on regular basis so as to improve the system further on the basis of their feedback, the minister said.