In a boost to MSMEs, the government has notified amendments to General Financial Rules (GFR) to ensure that goods and services valued less than Rs 200 crore are procured from domestic firms.
"Government 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 Aatma Nirbhar Bharat Package. A big boost to domestic suppliers, especially MSMEs," the Office of Finance Minister Nirmala Sitharaman tweeted on Thursday.
On May 13, Finance Minister Nirmala Sitharaman had announced Rs 3 lakh crore collateral free automatic loan, saying it will benefit 45 lakh small businesses. The loan will have four-year tenure and also a 12-month moratorium in repayment. Sitharaman also announced Rs 20,000 crore subordinate debt for stressed MSMEs which would cover 2 lakh businesses. The relief for MSME sector was part of Rs 20 lakh crore stimulus to tide over coronavirus crisis and boost economy.
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."
"Provided that for tenders below such limit, in exceptional cases where the Ministry or Department feels that there are special reasons for GTE, it may record its detailed justification and seek prior approval for relaxation to the rule from competent authority specified by the Department of Expenditure," it said.
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