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Revised GFRs 2017 give thrust to e-procurement; MSME procurement policy to continue

Updated: Mar 08, 2017 12:32:53pm
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Revised GFRs 2017 give thrust to e-procurement; MSME procurement policy to continue

New Delhi, Mar 8 (KNN) The much awaited General Financial Rules (GFRs) have been released by Ministry of Finance.

The Rule 153 of the GFRs 2017 upholds the special dispensation accorded to Khadi Village and Industries Commission (KVIC) and to Micro and Small Enterprises under section 11 of MSMED Act  2006.

Therefore, Public Procurement Policy for MSEs which mandates 20% procurement by central agencies from MSEs including 4% from the SC/ST owned MSE units, is not affected by the revised GFRs.

The GFRs 2017 push for e-procurement through e-procurement platforms like Central Public Procurement Portal and Government e-Marketing (GeM) Portal. 

All Ministries and Departments will have to mandatorily procure the goods and services from the online Government e-Marketplace (GEM) that  are available on the GeM platform.   The credentials of suppliers at GeM will be certified by DGS&D.   

The revised GFRs aim to incorporate emerging needs of financial management due to abolition of distinction between plan and non-plan expenditure, merger of railway budget in Union Budget, Direct Benefit Transfer (DBT) among others 

The   GFRs   are   rules   and   orders   dealing   with   matters   involving   public finances. These rules were issued for the first time in 1947 bringing together in one place all existing orders and instructions pertaining to financial matters. These have subsequently been modified and issued as GFRs 1963, GFRs 2005 and now GFRs 2017.

These rules and orders are treated as executive instructions to be observed by all Departments and Organisations under the Government and govern and govern almost entire public procurement of goods and services.

Keeping in view that there is no central legislation for public procurement in India, the rules and directives contained in the GFRs provide the necessary legal and administrative framework for public procurement.   The States in India, however, have their own rules, guidelines or legislation on procurement.  

The GFRs 2017 may be accessed from here: http://www.finmin.nic.in/the_ministry/dept_expenditure/GFRS/GFR2017.pdf (KNN Bureau)

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