Restrictions under Rule 144 (xi) of the General Financial Rules (GFRs), 2017
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division
512, Lok Nayak Bhawan,
New Delhi. Dated the 8th February 2021
Subject: Restrictions under Rule 144 (xi) of the General Financial Rules (GFRs), 2017.
Attention is invited to this Department’s Order (Public Procurement No.1) issued vide OM F.No.6/18/2019-PPD dated 23.07.2020. As per para 11 of the Order, in case of Works contracts, including turnkey contracts, contractors shall not be allowed to sub-contract works to any contractor from a country which shares a land border with India unless such contractor is registered with the Competent Authority. However, no such restriction is stipulated in the Order regarding other procurements i.e. procurement of Goods, Services, etc.
2. This office is in receipt of representations seeking Clarification whether it is permitted for the bidders to procure raw material or components/ sub-assemblies or the finished goods etc. from the vendors from the countries sharing land borders with India.
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3. In this context following is hereby clarified:
i. A bidder is permitted to procure raw material, components, sub-assemblies etc. from the vendors from countries which shares a land border with India. Such vendors will not be required to be registered with the Competent Authority, as it is not regarded as “sub-contracting’.
ii However, in case a bidder has proposed to supply finished goods procured directly/ indirectly from the vendors from the countries sharing land border with India, such vendor will be required to be registered with the Competent Authority.
4. This is issued with the approval of Secretary (Expenditure).
Kotluru Narayan Reddy
Deputy Secretary to the Govt. of India
Email: [email protected]
(1) Secretaries of All Ministries/ Departments of Government of India,
(2) Chief Secretaries/ Administrators of Union Territories/ National Capital Territory of Delhi.