The state government, as part of its e-governance initiatives and quest to improve transactional effectiveness and sustain effective tendering process, has issued orders for the implementation of e-procurement in four departments. The departments include Andhra Pradesh Technology Services Ltd (APTS); Andhra Pradesh State Road Transport Corporation (APSRTC); Commissionerate of Tenders (CoT) (covering Irrigation and Command Area Development Department, and Roads & Buildings Department) and Andhra Pradesh Health Medical Housing & Infrastructure Development Corporation (APHMHIDC).

The e-procurement will be followed in irrigation and R&B departments on a pilot basis in respect of project costing Rs 1 crore and above, taken up with state government funds (including Nabard and AIBP) and national highway works.

The government in its order GO MS No. 2, Information Technology & Communication Department, dated March 15, 2003 stated that all the existing rules applicable to the processing of conventional tenders are applicable to the bids to be secured through e-procurement.

Works which are included in eprocurement tenders, however, will not be received in the conventional method.

Any tender for an engineering work or procurement of goods and services worth Rs crore and above by the Commissionerate of Tenders shall be taken up only through the eprocurement process henceforth.

The government has decided that e-procurement processes would be valid for procurement of goods and services, and also for entrustment of contracts for engineering, IT and other projects.

The e-procurement initiative will be developed, operated and maintained by a consortium led by M/S. C1 India. The Information Technology Act, 2000 provides legal recognition for transactions carried out by means of electronic data and other means of electronic communication, commonly referred to as electronic commerce.