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Desist from non-competitive
behaviour. The operation of cartels by groups of companies to keep prices
high must end. It is unacceptable to obstruct the forces of competition
from having
freer play. Even profit maximisation should be within the bounds of
decency and greed. The private sector should show some self-restraint in
this regard.
~Dr Manmohan Singh, Prime Minister of India
Ten Point Social Charter, (Sixth Point)
Open tender is the best way to ensure that the citizens would obtain
maximum benefits from the companies by undertaking the task; also by open
tender companies can get the best proposals to do the job more effectively
and efficiently.
This also allows fair competition for businesses and provide better value
to companies. Increasing the opportunity for potential bidders to
participate in a tender can make the bidding process more efficient and
reduce the likelihood of collusion.
This also helps companies to a great extent to do away with the loss /
make extra payment due to formation of cartel. In procurement markets,
barriers to entry can be lowered by ensuring more participation, as it
gives open playing field for all market players, face the same competitive
environment, standardize procurement process for every one.
The fair and just principle and the principle of competition through an
open tender procurement, lead a supplier enthusiasm, interests of
suppliers maintained, and competition conducive to encourage enterprises
to get rid of inhibitions. This promotes enterprises to gradually adapt to
the market economy of operation, follow the efficiency of principle, to
achieve the efficiency of markets to drive economic prosperity of the
market.
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