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Delhi Government Suspends Central Procurement Agency's Operations for Hospitals

In a significant move, the Delhi government has suspended the operations of the Central Procurement Agency, directing hospitals to independently procure medicines and medical equipment. This decision comes in light of concerns over the quality of supplies and aims to ensure that healthcare facilities can maintain adequate stock levels. The CPA's pending tenders will be canceled, and hospitals will be responsible for their own procurement until a new system is established. This shift follows a report on alleged corruption regarding substandard medical supplies, prompting the health minister to take action. Read on to learn more about the implications of this decision.
By Narendra Chaudhary Aug 8, 2026, 08:13 IST

Interim Measures by Delhi Government

New Delhi, August 7 - The Delhi government has temporarily halted the procurement activities of the Central Procurement Agency (CPA) and has instructed government hospitals to independently purchase medicines and medical equipment until a new system is established. This information was disclosed in an official order.


The order states that all pending and incomplete tenders initiated by the CPA will be canceled and returned to the respective hospitals for further action.


It was noted that the central procurement system was implemented following government orders issued last June, which was a policy decision that should have been presented to the Cabinet as per regulations. Established in 1994, the CPA is responsible for procuring medicines and surgical supplies for all institutions under the Delhi government. According to the order, existing contracts and procurement agreements will remain in effect until their terms are completed or canceled.


The directive also mentions that hospitals will need to procure essential medicines themselves until the CPA finalizes contracts with predetermined rates for these supplies. This decision follows a report requested by Health Minister Pankaj Singh from the health department after the Anti-Corruption Branch registered a case regarding the alleged supply of substandard medical and surgical materials in government hospitals.