Rule 160 of The General Financial Rules 2017 E Procurement
Original Rule Text
Visual Summary
All bids must be received through e-procurement portals.
Use NIC’s solution or other approved service providers.
Exemptions for national security or Indian Missions Abroad with approval.
Executive Summary
Rule 160 of the General Financial Rules, 2017, mandates that all Ministries and Departments must receive bids through e-procurement portals. It provides flexibility by allowing the use of the e-procurement solution developed by NIC or other approved service providers, especially for those with low procurement volumes. Crucially, the rule also outlines specific exemptions for cases involving national security and strategic considerations, or tenders floated by Indian Missions Abroad, provided the necessary approvals are obtained from the competent authority.
In-Depth Analysis of the Rule
Introduction: Rule 160 establishes the framework for electronic procurement within government entities, aiming to enhance transparency, efficiency, and accountability in the bidding process. This rule is a cornerstone for modernizing government purchasing practices.
Breakdown of the Rule:
- Mandatory E-Procurement (i): The rule makes it compulsory for all Ministries and Departments to receive bids exclusively through e-procurement portals for all their procurement activities. This ensures a standardized and digital approach to tender submissions.
- E-Procurement Solutions (ii): For entities with limited procurement volume or those primarily handling day-to-day office procurements, the rule suggests utilizing the e-procurement solution developed by the National Informatics Centre (NIC). Larger Ministries or those with specific needs can opt for other service providers, provided they follow due process.
- Exemptions for National Security (iv): In situations where national security and strategic considerations demand confidentiality, Ministries and Departments may be exempted from the e-procurement mandate. Such exemptions require the explicit approval of the concerned Secretary and the concurrence of Financial Advisers.
- Exemptions for Indian Missions Abroad (v): Tenders floated by Indian Missions Abroad can also be exempted from e-procurement. The decision for such an exemption rests with the Competent Authority responsible for deciding the tender.
Practical Example: Imagine the Ministry of Health and Family Welfare needs to procure a large batch of medical equipment. According to Rule 160 (i), they must receive all bids for this procurement through an e-procurement portal. If the Ministry of Defence, however, needs to procure highly sensitive encryption software, they could seek an exemption under Rule 160 (iv) due to national security concerns, provided they obtain approval from their Secretary and the Financial Adviser.
Related Provisions
Rule 160 on E-Procurement is part of a broader framework governing public procurement and financial management. Other relevant provisions include:
- Rule 144 of The General Financial Rules 2017 Fundamental Principles of Public Buying: Lays down the core principles of efficiency, economy, transparency, and fair treatment in all public procurements.
- Rule 149 of The General Financial Rules 2017 Government e-Market place GeM: Mandates the use of the Government e-Marketplace (GeM) for common use goods and services, complementing the e-procurement mandate.
- Rule 159 of The General Financial Rules 2017 E Publishing: Makes it mandatory to publish tender enquiries, corrigenda, and bid awards on the GeM-Central Public Procurement Portal, ensuring wide dissemination and transparency.
Learning Aids
Mnemonics
- E-Procurement: MES – Mandatory, Exemptions, Solutions.
Process Flowchart
Multiple Choice Questions (MCQs)
1. What is mandatory for Ministries/Departments regarding bids under Rule 160 of the General Financial Rules, 2017?
- A) Receiving bids via physical mail only
- B) Receiving all bids through e-procurement portals
- C) Receiving bids through fax
- D) Receiving bids through email attachments
Show Answer
Correct Answer: B) Receiving all bids through e-procurement portals
2. Which e-procurement solution is suggested for Ministries/Departments with low procurement volume under Rule 160 (ii) of the General Financial Rules, 2017?
- A) A proprietary solution from a private vendor
- B) The e-procurement solution developed by NIC
- C) Any international e-procurement platform
- D) Manual tender processing
Show Answer
Correct Answer: B) The e-procurement solution developed by NIC
3. Under what circumstances can Ministries/Departments be exempted from e-procurement as per Rule 160 (iv) of the General Financial Rules, 2017?
- A) When the procurement value is very low
- B) When national security and strategic considerations demand confidentiality
- C) When there is a lack of internet connectivity
- D) When the Ministry prefers offline methods
Show Answer
Correct Answer: B) When national security and strategic considerations demand confidentiality
4. Who must approve exemptions for e-procurement in cases of national security under Rule 160 (iv) of the General Financial Rules, 2017?
- A) The Head of the Department only
- B) The Minister in charge
- C) The concerned Secretary with concurrence of Financial Advisers
- D) The Public Accounts Committee
Show Answer
Correct Answer: C) The concerned Secretary with concurrence of Financial Advisers
5. For tenders floated by Indian Missions Abroad, who decides on e-procurement exemption under Rule 160 (v) of the General Financial Rules, 2017?
- A) The Ministry of External Affairs
- B) The Finance Ministry
- C) The Competent Authority to decide the tender
- D) The local embassy staff
Show Answer
Correct Answer: C) The Competent Authority to decide the tender
Frequently Asked Questions
1. What is the primary requirement of Rule 160 of the General Financial Rules, 2017?
Rule 160 primarily mandates that all Ministries and Departments must receive bids for all procurements through e-procurement portals to ensure transparency and efficiency.
2. Are there any exceptions to the mandatory e-procurement rule under the General Financial Rules, 2017?
Yes, exemptions can be granted for cases involving national security and strategic considerations, or for tenders floated by Indian Missions Abroad, subject to appropriate approvals from the concerned Secretary and Financial Advisers or the Competent Authority, respectively.
3. What options are available for e-procurement solutions under Rule 160 of the General Financial Rules, 2017?
Ministries and Departments with low procurement volume or those handling day-to-day office procurements may use the e-procurement solution developed by NIC. Other entities can engage alternative service providers, provided they follow due process.
Key Takeaways
- E-procurement is mandatory for all bids by Ministries/Departments.
- Entities can choose between NIC’s solution or other approved service providers.
- Exemptions are possible for national security/strategic reasons or Indian Missions Abroad, requiring specific approvals.
- The rule aims to enhance transparency, competition, and efficiency in government procurement processes.
Conclusion
Rule 160 of the General Financial Rules, 2017, is a pivotal regulation that drives the digital transformation of government procurement. By making e-procurement mandatory, it ensures a standardized, transparent, and efficient bidding environment, while also providing necessary flexibility and exemptions for sensitive or unique circumstances. Adherence to this rule is crucial for maintaining financial propriety and optimizing public spending.