Para 1.3 - Currency Conversion | KartavyaDesk

Original Rule Text

The following illustration may be used as guidance: Financial limits in GFRs are to be calculated for the Indian Mission in Bangladesh, where the relevant local currency is Bangladesh Taka (BT). Let the PPP conversion rate (as per international dollar) published by the IMF for INR and BT in a particular year be as follows: Rs. 22.947 = 1 USD = 31.98 BT The PPP-based conversion rate for BT/ INR may be calculated as 31.98/ 22.947 = 1.394. Thus, a threshold of INR. 25,00,000 (say the threshold for OTE) would be then 34,85,000 BT. b) Exemptions: Please also refer to para 4.3.2-4-g) for exemption from restriction on Global Tenders, para 1.11.4-3-f)ii) for exemption from restriction on bidders from Landborder countries and para 4.17.1-4 for exemption from eProcurement for Indian Missions and CPSE Units Abroad. 5. Portals: GeM portal, GePNIC portal (Government e-Procurement of NIC, eproc.gov.in), and various such platforms of different Organisations carry out a substantial proportion of Public Procurement. Hence, the procedures for such platforms should conform to these ‘Procurement Guidelines.’ 6. Outsourced Procurement: These procurement guidelines would continue to apply if these procuring entities outsource the procurement process, bundle the procurement process with other contractual arrangements, or utilise the services of a procurement support agency or procurement agents to carry out the Procurement on their behalf. 7. Customisation: This Manual is to be taken as generic guidelines, which are necessarily broad in nature. Procuring Entities are advised to customise these manuals, with the approval of competent authority and financial concurrence, to suit their local/specialised needs by issuing their own detailed Manuals (including customised formats); Model Tender Documents; Schedule of Procurement Powers and Checklists to serve as practical instructions for their officers and to ensure completeness of examination of cases. For procuring organisations that have their own detailed manuals or procedure orders, the initiation, authorisation, Procurement, and execution of contracts undertaken by them shall be regulated by detailed rules and orders contained in their respective regulations and by other special orders applicable to them. 8. Exemptions: These procurement guidelines would not apply to procurements by procuring entities mentioned above for their own use from their subsidiary companies, including Joint Ventures, where they have a controlling share. Moreover, by a general or special notification, the Government may permit certain ‘Procuring Entities’ mentioned in the sub-para above, considering unique conditions under which they operate, for all or certain categories of procurement, to adopt detailed approved guidelines for procurement, which may deviate in some respects but conform with all other essential aspects of these ‘Procurement Guidelines.’ 9. Procurements financed by Loans/ Grants extended by International Funding Agencies: a) For projects funded by the World Bank, Asian Development Bank, and other International Funding Agencies (IFA), the Articles of Agreement, with the approval of Government’s

What This Means

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

Key Points

• •Financial limits in GFRs (General Financial Rules) must be calculated accurately when procuring goods in foreign countries with different currencies.
• •Use the Purchasing Power Parity (PPP) conversion rate published by the IMF to convert INR thresholds to the local currency.
• •The manual provides exemptions from certain restrictions, such as global tenders and restrictions on bidders from land-border countries.
• •Procuring entities can customize the guidelines to suit their local/specialized needs with the approval of the competent authority and financial concurrence.
• •These guidelines apply even when procurement is outsourced or handled by procurement agents.

Practical Example

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

Frequently Asked Questions

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