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Para 4.12 - GFR Applicability | KartavyaDesk

Goods Manual

Original Rule Text

(Rule 154 of GFR 2017) 72As stipulated in Department of Expenditure OM No. 6/1/2018-PPD dated 19.01.2018. 73Notified vide OM No. F.6.18.2019-PPD issued by Department of Expenditure dated 11.06.2021. 74Notified vide OM No. F.20/42/2021-PPD issued by Department of Expenditure dated 20.05.2024. Scientific Ministries/ Departments on which this OM is applicable are (i) 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 & Development Organization, Indian Council of Agricultural Research (ICAR), including its affiliated institutions and Universities, Department of Health Research (DHR), including Indian Council of Medical Research (including all Autonomous Bodies under these Ministries/ Departments) (ii) Educational and Research Institutes conducting post-graduate/ doctoral level courses or research, under any Ministry/ Department. (iii) It is also clarified that GFRs are not applicable to the projects executed by State level Institutions or by the Private Universities/Institutions/Organisations, even if they are funded by Ministries/ Departments/ Organizations mentioned above. (iv) In such cases, it is for the Ministry/ Departments/ organization to put in appropriate financial controls to achieve the intended purpose.

What This Means

Para 4.12 of the Manual for Procurement of Goods, 2017, which relates to Rule 154 of the General Financial Rules (GFR) 2017, essentially clarifies which organizations must follow the GFR when buying goods. It primarily applies to scientific ministries and departments like the Department of Science and Technology, Department of Atomic Energy, and similar bodies, including their affiliated institutions and universities. It also covers educational and research institutes offering postgraduate or doctoral programs under any ministry or department.

However, this rule explicitly states that the GFR doesn't apply to projects carried out by state-level institutions or private universities/institutions/organizations, even if they receive funding from the central government ministries or departments mentioned above. In those cases, the funding ministry or department is responsible for setting up its own financial controls to ensure the money is used correctly and achieves its intended purpose. This ensures accountability while recognizing the different operational contexts of these institutions.

In short, if you work for a central government scientific ministry, department, or affiliated educational/research institute, you need to follow GFR guidelines when procuring goods. If you're dealing with state-level or private entities receiving central funding, remember that the responsibility for financial oversight shifts to the funding ministry/department, and they will have their own rules to follow.

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

Key Points

  • •GFR applies to central government scientific ministries/departments and affiliated institutions.
  • •GFR applies to educational/research institutes conducting post-graduate/doctoral courses under any ministry/department.
  • •GFR does NOT apply to projects executed by state-level institutions or private universities/institutions, even if centrally funded.
  • •Funding ministries/departments are responsible for financial controls for state-level/private entities.
  • •Refer to Department of Expenditure OMs for specific applicability and updates.

Practical Example

The Department of Biotechnology (DBT) wants to fund a research project at the 'Advanced Research Institute of India' (ARIA), a private research institute. According to Para 4.12, since ARIA is a private institution, the GFR does not directly apply to the project's procurement activities. Instead, DBT must establish its own financial guidelines and monitoring mechanisms for the project to ensure proper use of funds.

Conversely, if DBT were funding a similar project at the 'National Institute of Science' (NIS), a central government institute affiliated with DBT, the GFR would apply directly to NIS's procurement processes. NIS would need to follow GFR guidelines for tendering, vendor selection, and payment procedures. DBT would still oversee the project, but NIS would be responsible for adhering to GFR rules.

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

Frequently Asked Questions

Does this rule apply to autonomous bodies under scientific ministries?▼
Yes, Para 4.12 explicitly includes autonomous bodies under the listed scientific ministries/departments.
If my department funds a project at a state university, do they need to follow GFR?▼
No, state-level institutions and private universities/institutions are exempt from GFR, even if funded by central ministries. Your department needs to establish its own financial controls.
Where can I find the specific OMs mentioned in Para 4.12?▼
The OMs are referenced by their number and date in the rule itself. You can search for them on the Department of Expenditure's website or through official government circular databases.
What kind of financial controls should a ministry put in place for projects at private institutions?▼
The specific controls will depend on the nature of the project and the institution. Generally, they should include clear guidelines on eligible expenses, procurement procedures, reporting requirements, and audit mechanisms.
Does this rule apply to all types of procurement, or only for goods?▼
This rule is within the 'Manual for Procurement of Goods, 2017,' so it primarily addresses the procurement of goods. However, similar principles of financial oversight apply to other types of procurement, such as services, as outlined in other relevant GFR rules and manuals.

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 Para 4.12 of the Manual for Procurement of Goods, 2017, which of the following organizations is generally NOT required to adhere to GFR 2017 for procurement?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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