Public Procurement

of Goods
Legal & Procedural
Framework
 Constitutional Provisions

Article 282
What it says???
• Provides for financial autonomy in public
spending
• It authorizes the Central and State
Governments to contract for goods and
services in the name of the President of India
or the Governor of the State (respectively),
and directs autonomy in public spending.
• No further provisions
 Legislative Provisions
 There is no comprehensive central legislation exclusively governing
public procurement.
 Various procurement rules and policies guided by central legislations
such as:

a) Contract Act 1872

b) Sale of Goods Act 1930
c) Prevention of Corruption Act 1988
d) Arbitration and Conciliation Act 1996

 Administrative Guidelines
• Comprehensive administrative rules and directives on financial
management and procedures for government procurement are
contained in the General Financial Rules ("GFR").
• Manual for Procurement of Goods 2017
• Manual by Individual Ministries /Department
Special Rules in Relation to Procurement in Specific
Sectors or Areas

 Defense: Defense Procurement Procedure, 2016

 and Defense procurement manual 2009
 Railways: IRS Condition ; Tender condition document
 Energy: New Exploration Licensing Policy (“NELP”) under the Petroleum and
Natural Gas Regulatory Act, 2006
 Electronics: The Preference for Domestically Manufactured Electronic Products
Policy (2013)
 Electricity: Electricity Act, 2003
 Telecoms: Guided by the National Digital Communications Policy – 2018.
 Pharmaceuticals: Pharmaceutical Purchase Policy 2013
 Super visioning Authorities
 ♦ The Central Vigilance Commission (“CVC”) tasked with increasing
transparency and objectivity in public procurement
 ♦ The Competition Commission of India (“CCI”) which checks anti-
competitive elements
 ♦ The Central Bureau of Investigation (“CBI”) engaged for investigation and
prosecution of the criminal activities in the procurement process such as
probity issues