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Govt. orders ‘priority’ for local tenders
Why is it in news?
- The Central government has reviewed procurement norms for various ministries.
Details:
- The government has tightened its procurement norms to make it tougher for Ministries to pursue global tenders for contracts worth up to Rs. 200 crore.
- Under the Atma Nirbhar Bharat Abhiyan announced in May, the government had barred departments from issuing global tenders for contracts worth Rs. 200 crore or less.
- For this General Financial Rules were amended to disallow global tender enquiries in such procurement of goods and services, with an eye on boosting the prospects of domestic micro, small and medium enterprises.
- So far, Ministries’ requests could be considered if they gave valid justification for the need to issue a global tender and the lack of alternatives within the country.
- Now, Ministries can no longer seek a nod for issuing a global tender unless they have first floated a domestic tender for their requirements, and tried to locate domestic producers in co-ordination with industry bodies.