Context: The government has relaxed procurement rules for scientific institutions, allowing faster and more flexible access to high-quality research equipment.
Relevance of the Topic: Mains: Supporting R&D in India: significance of new procurement reforms.
Amid complaints from scientists on sub-standard equipment affecting their research, the Finance Ministry issued a circular allowing select institutions to buy equipment outside the GEM portal.
Key Reforms
Bypassing GEM Portal:
- Existing rules required all government purchases- from laptops to furniture to be made with the cheapest vendor identified through the Government e-marketplace (GEM) portal. GEM is an initiative of the Ministry of Commerce to prioritise made-in-India equipment.
- Updated rules allow Directors of select institutes and Vice-Chancellors or Chancellors of universities to procure equipment outside the GEM portal, as it was unable to meet the requirement of high quality customised equipment needed by scientists.
Autonomy in Global Tenders:
- Updated rules allow the heads of scientific institutions to approve global tender enquiry up to ₹200 crore.
- Earlier, departmental Secretaries were required to issue such clearances. This usually led to a pile-up of requests and concomitant procurement delays.
Increased Purchase Limits:
- Updated rules have doubled the ceiling on goods that can be procured by scientific departments without quotations from ₹1 lakh to ₹2 lakh.
However, all of these concessions are strictly for scientific equipment and consumables, and meant only for: Organisations affiliated to the Ministry of Science and Technology, Council of Scientific and Industrial Research, Department of Atomic Energy and Space, Indian Council of Medical Research, Indian Council for Agricultural Research and educational institutions conducting postgraduate research under various Ministries.
Significance of easing the rules for procurement:
The reforms are being hailed as a landmark decision as reforms would:
- Enhance autonomy and flexibility for research institutions empowering them to innovate faster.
- Speeds up procurement for time-sensitive research.
- Ensures quality by allowing global sourcing.
- Reduces bureaucratic delays and red tape.