Rule 159 - Tender E-Publishing Exemption | KartavyaDesk
Original Rule Text
(ii) Individual cases where confidentiality is required, for reasons of national security, would be exempted from the mandatory e-publishing requirement. The decision to exempt any case on the said grounds should be approved by the Secretary of the Ministry/ Department with the concurrence of the concerned Financial Advisor. In the case of Autonomous Bodies and Statutory Bodies' approval of the Head of the Body with the concurrence of the Head of the Finance should be obtained in each such case. Statistical information on the number of cases in which exemption was granted and the value of the concerned contract should be intimated on a Quarterly basis to the Ministry of Finance, Department of Expenditure. (iii) The above instructions apply to all Tender Enquiries, Requests for Proposals, Requests for Expressions of Interest, Notice for pre-Qualification/ Registration or any other notice inviting bids or proposals in any form whether they are advertised, issued to limited number of parties or to a single party. (iv) Deleted.26 (v) These instructions would not apply to procurements made in terms of provisions of Rules 154 (Purchase of goods without quotations) or 155 (Purchase of goods by purchase committee) of General Financial Rules.
What This Means
Rule 159 of the General Financial Rules (GFR), 2017, deals with the mandatory e-publishing of tender information. Generally, all government tenders and procurement-related notices must be published online for transparency. However, there's an exception: if publishing the details of a particular tender would compromise national security, it can be exempted from this e-publishing requirement. This exception is not automatic; it requires approval from senior officials.
Specifically, the Secretary of the Ministry/Department and the Financial Advisor must both agree that the exemption is necessary for national security reasons. For Autonomous and Statutory Bodies, the Head of the Body and the Head of Finance must concur. Even when an exemption is granted, the Ministry of Finance (Department of Expenditure) needs to be informed quarterly about the number of exemptions and the total value of the contracts involved. This rule applies to all types of tender invitations, except for purchases made under Rules 154 and 155 (petty purchases).
In essence, Rule 159 balances the need for transparency in government procurement with the critical requirement to protect national security. It affects all government departments, autonomous bodies, and statutory bodies involved in procurement, as well as vendors who bid on government contracts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Mandatory e-publishing of tenders is generally required for transparency.
- •Exemption is allowed for national security reasons, but requires approval.
- •Approval process differs for Ministries/Departments versus Autonomous/Statutory Bodies.
- •Quarterly reporting to the Ministry of Finance is required for all exemptions.
- •Exemption does NOT apply to purchases under GFR 154 and 155.
Practical Example
The Ministry of Defence is procuring advanced surveillance equipment. The tender involves highly sensitive technology, and publicly disclosing the specifications could compromise national security. The Secretary of Defence, Mr. Sharma, after consulting with the Financial Advisor, Ms. Verma, decides to exempt the tender from mandatory e-publishing. They document the reasons for the exemption, citing specific national security concerns. The contract is worth ₹50 crore. At the end of the quarter, the Ministry of Defence reports to the Department of Expenditure that one exemption was granted, with a contract value of ₹50 crore. This ensures accountability even when exemptions are made.
In another scenario, the National Institute of Technology (NIT), a statutory body, needs to purchase specialized software for cybersecurity research. The Head of the Institute, Dr. Patel, and the Head of Finance, Mr. Singh, determine that publishing the details of the software could reveal vulnerabilities in national infrastructure. They approve an exemption from e-publishing and report the exemption to the Ministry of Finance at the end of the quarter.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What constitutes 'national security' for the purpose of this rule?▼
Who is responsible for reporting the exemptions to the Ministry of Finance?▼
What information needs to be reported to the Ministry of Finance?▼
Does this rule apply to all types of procurement?▼
What happens if an exemption is wrongly granted?▼
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 Rule 159 of GFR 2017, which of the following authorities must concur to exempt a tender from mandatory e-publishing due to national security concerns in a Central Government Ministry?
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