“Uttar Pradesh introduces stringent procurement rules to enhance transparency in tenders, mandating e-procurement, detailed disclosures, and stricter norms for contracts. The move aims to curb corruption, ensure fair bidding, and create a contractor database with service ratings, aligning with India’s push for digital governance and accountability in public spending.”
Uttar Pradesh Bolsters Transparency in Public Procurement
The Uttar Pradesh government has rolled out a comprehensive set of procurement rules to overhaul the tendering process, emphasizing transparency and accountability. Effective immediately, all state tenders must be processed through the e-procurement portal (etender.up.nic.in), aligning with the state’s commitment to digital governance. This mandate follows the model of Tamil Nadu, which enforced e-procurement under the Tamil Nadu Transparency in Tender Rules in 2023.
The new rules require detailed disclosures from contractors, particularly those with foreign affiliations. Indian firms with foreign nationals on their boards or those backed by foreign investors holding over 15% stake must provide comprehensive declarations about their supply chain, vendors, and country of origin. Foreign contractors bidding directly must disclose their Indian representatives and the commission included in their quoted prices. These measures aim to eliminate opaque practices and ensure traceability in procurement.
A key feature of the reforms is the creation of a centralized database of contractors, agents, and suppliers, complete with service ratings based on past performance. This database, expected to be operational by mid-2026, will allow authorities to assess track records before awarding contracts, reducing the risk of substandard deliverables. “The goal is to ensure complete transparency, especially in smaller contracts handled independently by departments,” a senior official from the UP Finance Department stated.
The rules also introduce stricter penalties for poor-quality goods or services, addressing a long-standing issue in contracts valued up to Rs 100 crore, which often escape rigorous scrutiny. Departments, ministries, and public sector enterprises must now adhere to standardized guidelines, replacing the earlier practice of independent tender assignments. This aligns with the central government’s efforts to tighten procurement norms, as seen in the Department of Expenditure’s directive in April 2025.
To further enhance fairness, the state has adopted an online reverse tendering system for contracts exceeding Rs 1 crore, inspired by Andhra Pradesh’s procurement model for Tirumala Tirupati Devasthanams. Bidders must qualify both technical and financial bids, with certifications like Agmark and FSSAI mandatory for specific commodities. The lowest bid (L1) sets the offset price for reverse tendering, ensuring competitive pricing.
The move comes amid India’s broader push for self-reliance and transparency in public procurement. In 2020, the central government banned global tenders for contracts up to Rs 200 crore to bolster MSMEs, a policy UP’s new rules complement by prioritizing local vendors while enforcing accountability. The state’s e-procurement portal, updated in July 2025, now supports modern web standards and ensures encrypted, digitally signed transactions for secure bidding.
Industry experts have lauded the reforms, noting their potential to curb corruption and favoritism. However, some contractors express concerns over increased compliance burdens, particularly for smaller firms navigating the digital platform. The government has assured technical support through platforms like Tender247 and Bidassist, which provide 24/7 assistance for e-tender submissions.
Disclaimer: This article is based on recent reports and information from government sources, news outlets, and procurement portals. The data reflects updates as of August 2025 and is subject to change. Readers are advised to verify details through official channels like etender.up.nic.in for the latest guidelines.