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Finance Ministry confirms restrictions on global tenders for amounts up to Rs 200 crore

Further, ministries or departments that needed to float global tenders for amounts below the threshold would have to seek approval from the cabinet secretariat, which functions directly under Prime Minister Narendra Modi, the notification said.

, ET Bureau|
Last Updated: Jun 01, 2020, 04.06 PM IST
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This would not only help MSMEs but also help achieve Atmanirbhar Bharat and further the Make in India initiative, FM added.
The finance ministry clarified that the restriction on global tenders for amounts up to Rs 200 crore covered all goods and services, including consultancy services and turnkey projects, in a notification on Thursday.

Further, ministries or departments that needed to float global tenders for amounts below the threshold would have to seek approval from the cabinet secretariat, which functions directly under Prime Minister Narendra Modi, the notification said.

On May 13, finance minister Nirmala Sitharaman had made the announcement regarding the restrictions on global tender as part of the first tranche of the Atmanirbhar Bharat package.

With the aim of benefiting the micro, small and medium enterprises (MSMEs), Sitharaman said the move would protect the sector from unfair competition from foreign companies.

This would not only help MSMEs but also help achieve Atmanirbhar Bharat and further the Make in India initiative, she added.

Later, on May 15, the finance ministry amended rule 161 of the General Financial Rules (GFR) pertaining to global tenders for government procurement.

As per the rule, “Where the Ministry or Department feels that the goods of the required quality, specifications etc., may not be available in the country and it is necessary to also look for suitable competitive offers from abroad, the Ministry or Department may send copies of the tender notice to the Indian Embassies abroad as well as to the foreign Embassies in India.”

The amendment added that no global tender would be allowed below Rs 200 crore and if required, ministries or departments would have to justify the same to an authority that would be announced in a separate notification.

The latest notification named the secretary (coordination), cabinet secretariat, VP Joy, as the mentioned authority.

(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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