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Rule 154 - Scientific Purchases | KartavyaDesk

GFR 2017

Original Rule Text

23 Replace with purchase of goods costing above Rs. 1,00,000/- (Rupees one lakh) and upto Rs. 10,00,000/- (Rupees ten lakh) in case of Scientific Ministries/ Departments/ Organization of Government of India which are Department of Science and Technology, Department of Bio-technology, Department of Scientific & Industrial Research, Department of Atomic Energy, Department of Space, Ministry of Earth Sciences, Defence Research and Development Organisation, Indian Council of Agricultural Research (ICAR), including its affiliated institutions and Universities, Department of Health Research (DHR), including Indian Council of Medical Research, Educational and Research Institutes conducting post-graduate/ doctoral level courses or research, under any Ministry/ Department, notified vide Department of Expenditure OM No. F.20/42/2021-PPD dated 20.05.2024. Note: These powers are to be used only when the required goods are not available on Government e-Marketplace (GeM) as stipulated in this Department OM No. 6/1/2018-PPD dated 19.01.2018.

What This Means

General Financial Rule (GFR) 154 provides a special provision for certain scientific and research-oriented government organizations when purchasing goods. Specifically, it allows these organizations to directly purchase goods costing between ₹1,00,001 and ₹10,00,000 without necessarily going through the standard tendering process, provided the goods aren't available on the Government e-Marketplace (GeM). This aims to streamline procurement for specialized equipment and materials often needed in scientific research.

This rule applies to a defined list of organizations, including the Department of Science and Technology, Department of Biotechnology, DRDO, ICAR, and educational/research institutes conducting postgraduate/doctoral level courses or research under any Ministry/Department. It's important to note that this exception is only valid if the required goods are *not* available on GeM. The intention is to balance efficiency in procurement with the government's commitment to using GeM as the primary platform for purchases. The rule was updated on May 20, 2024, via Department of Expenditure OM No. F.20/42/2021-PPD.

Essentially, if you work in one of the listed scientific departments or research institutions, and you need to buy something that costs between ₹1,00,001 and ₹10,00,000, check GeM first. If it's not there, Rule 154 allows you to explore other purchasing options, potentially speeding up the process.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Applies to scientific ministries/departments/organizations listed in the rule.
  • •Covers purchases of goods costing between ₹1,00,001 and ₹10,00,000.
  • •Only applicable if the required goods are NOT available on GeM.
  • •Aims to streamline procurement for specialized scientific needs.
  • •Refer to Department of Expenditure OM No. F.20/42/2021-PPD dated 20.05.2024 for the latest updates.

Practical Example

Dr. Sharma, a researcher at the Indian Institute of Agricultural Research (ICAR), needs a specialized microscope for her research project. The microscope costs ₹6,50,000. Before proceeding with a direct purchase, Dr. Sharma's team checks GeM to see if a similar microscope is available. After confirming that no suitable microscope is listed on GeM, they can utilize Rule 154 to procure the microscope directly from a vendor, following the internal procurement guidelines of ICAR.

In another scenario, the Department of Biotechnology needs to purchase a specific type of bioreactor costing ₹8,00,000. After checking GeM and finding no suitable options, the procurement officer, Mr. Verma, can initiate the purchase process under Rule 154, ensuring all necessary documentation and approvals are in place, as per the department's internal financial regulations.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What happens if the required goods are available on GeM but at a higher price?▼
Generally, you are expected to purchase from GeM even if the price is slightly higher, as GeM promotes transparency and fair competition. However, you can document the price difference and justify a purchase outside GeM if there are compelling reasons (e.g., significantly better specifications or faster delivery). This justification needs proper approval.
Does Rule 154 allow us to bypass all procurement procedures?▼
No. Rule 154 only provides an exception to the standard tendering process when goods are not available on GeM. You still need to follow your organization's internal procurement guidelines, obtain necessary approvals, and maintain proper documentation.
Which organizations are covered under Rule 154?▼
The rule specifically lists organizations like the Department of Science and Technology, Department of Biotechnology, Department of Scientific & Industrial Research, Department of Atomic Energy, Department of Space, Ministry of Earth Sciences, Defence Research and Development Organisation, Indian Council of Agricultural Research (ICAR), including its affiliated institutions and Universities, Department of Health Research (DHR), including Indian Council of Medical Research, Educational and Research Institutes conducting post-graduate/ doctoral level courses or research, under any Ministry/ Department.
What is the significance of Department of Expenditure OM No. F.20/42/2021-PPD dated 20.05.2024?▼
This Office Memorandum (OM) from the Department of Expenditure provides the latest updates and clarifications regarding Rule 154. Always refer to this OM to ensure you are following the most current guidelines.
What if the cost of the goods exceeds ₹10,00,000?▼
Rule 154 does not apply. You must follow the standard procurement procedures outlined in the GFR for purchases exceeding ₹10,00,000, which typically involves tendering.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to GFR 154, which of the following conditions must be met for a scientific organization listed in the rule to directly purchase goods costing between ₹1,00,001 and ₹10,00,000 without standard tendering processes?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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