Govt hospitals can now directly buy medical supplies

The Delhi government on Friday announced suspension of the Central Procurement Agency’s (CPA) centralised procurement system and directed government hospitals to buy medicines, surgical items, consumables, and medical equipment directly

Published on: Aug 8, 2026, 08:15:01 IST

By Ridhima Gupta

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The Delhi government on Friday announced suspension of the Central Procurement Agency’s (CPA) centralised procurement system and directed government hospitals to buy medicines, surgical items, consumables, and medical equipment directly.

According to a health department order, seen by HT, the move comes months after the government’s Anti-Corruption Branch (ACB) alleged procurement irregularities and arrested former Directorate General of Health Services (DGHS) director and CPA chief Dr Vatsala Agarwal, along with two other senior officials.

The order stated that the procurement system for drugs, consumables, surgical items, equipment, and other essential healthcare commodities was centralised through orders issued in June 2025. However, under the Transaction of Business Rules, Delhi, proposals involving any important policy change or existing policy must be placed before the council of ministers and cannot be concluded at the level of the department, it stated.

Until fresh rate contracts for essential medicines are finalised, government hospitals and institutions have been directed to procure medicines on their own through their heads of departments, the order stated.

As part of the decision, “all pending tenders, incomplete tender processes and tenders currently under process initiated by CPA that are not finalised are cancelled with immediate effect,” the order said.

It added that “the procurement functions undertaken through the CPA are kept in abeyance except for essential drugs.”

According to the order, existing rate contracts and procurement contracts will continue until expiry but will be reviewed for “possibilities of illegality and procedural lapses, if any.”

HT had earlier reported that the ACB registered an FIR in connection with alleged irregularities in procurement through the CPA, where medical supplies — including bed sheets, linen items, and ORS — were bought at inflated rates.

ABOUT THE AUTHOR
Ridhima Gupta
Ridhima Gupta is a Principal Correspondent at Hindustan Times, where she covers healthcare, pharmaceuticals, and public health policy. Her reporting centers on Delhi’s major hospitals (AIIMS, Safdarjung, Lok Nayak), the state health department, and emerging medical trends. Ridhima is particularly interested in reporting on healthcare issues through the lens of women, children, and persons with disabilities. Her work often explores the intersection of healthcare and public policy, examining how these factors shape access health care. Based in New Delhi, many of her reports have led to direct government action over the years, in different city. Earlier this year, she completed a media training workshop on the Impact of Extreme Heat on Health, organised by the Global Strategic Communications Council (GSCC), further strengthening her interest in reporting on the intersection of climate change and public health. A postgraduate from the Asian College of Journalism, Chennai, Ridhima has around a decade of experience in journalism. She began her career as a trainee television reporter with Mirror Now in Mumbai and has since worked across multiple cities, including Bengaluru, Hyderabad, and Delhi, contributing to both print and broadcast newsrooms. She is a recipient of the Laadli Media Fellowship (2022) for her reporting on education, disability, and women’s issues. Before joining Hindustan Times, Ridhima worked with The Times of India, New Indian Express and News18. A native of Jhansi, Uttar Pradesh, Ridhima completed her undergraduate studies in Biotechnology. And when she is not working as a journalist she likes to paint and go on nature hikes.Read More

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