Govt notifies changes in rules disallowing global tender for procurement up to Rs 200 cr

The government has notified amendments to General Financial Rules (GFR) to ensure that goods and services valued less than Rs 200 crore are being procured from domestic firms, a move which will benefit MSMEs.

"Govt has notified the amendments to the General Financial Rules 2017 to ensure that henceforth global tenders will be disallowed in government procurement up to Rs 200 crore, as announced in the #AatmanirbharBharat Package. A big boost to domestic suppliers, especially MSMEs, the Office of Finance Minister Nirmala Sitharaman said in a tweet.

Sitharaman had last week announced an economic support package for micro, small and medium enterprises (MSMEs), which includes disallowing global tender for government procurement up to Rs 200 crore.

Amending the GFR, the Department of Expenditure under Ministry of Finance said, "No Global Tender Enquiry (GTE), however, shall be invited for tenders up to Rs 200 crore or such limit as may be prescribed by the Department of Expenditure from time to time."