Para 4.3.2 - GTE Exemptions | KartavyaDesk
Original Rule Text
view of existing collaboration agreements they entered with foreign suppliers before 15.05.202066. e) Based on the reference received from the Ministry of Health & Family Welfare (MoH&FW), GTE can be floated for 354 Medical Devices67 and 120 Drugs68 (placed in Annexure-31). These exemptions for Medical Devices and Drugs are provided upto 31.03.2027 till further orders. It is further clarified that: i) The machine system includes spare parts and accessories which may be procured by procuring entities together or separately. ii) Procuring entity concerned may frame the detailed technical specifications for the above devices as per their requirement. f) Projects funded by Multilateral Development Banks (MDBs like The World Bank, Asian Development Bank, etc.)/ Bilateral Funding Agencies (BFAs), where the procurement is governed by the conditions negotiated in the loan agreement and where the project executing agencies from time to time further award works to various Autonomous Bodies/ Central Public Sector Enterprises (CPSEs) etc., the Secretary of the Ministry/ Department responsible for execution of such project shall be the Competent Authority for approval for issuance of GTEs by such Autonomous Bodies/ CPSEs etc69. g) Procurement of semi-conductor equipment for the purpose of manufacturing electronics and procurements by public funded semiconductor and display fab facilities (including such facilities in Institutes of High Learning), up to 31/03/2025.70 h) GTE restriction upto Rs 200 crores is not applicable for bona-fide procurements done outside India for use outside India, by CPSEs having international operations or by Indian Missions abroad. Such entities should ensure that the bulk of procurement is done in India (and exported for their use abroad), as far as feasible, so as not only to promote Make in India but also to improve export performance.
What This Means
Para 4.3.2 of the Manual for Procurement of Goods, 2017, outlines several exceptions to the Global Tender Enquiry (GTE) requirement. Generally, government departments need to invite global tenders for purchases above a certain value to ensure fair competition. However, this rule provides specific scenarios where that's not necessary. These exceptions are often granted to support specific sectors, address urgent needs, or align with international agreements. The goal is to balance promoting domestic industries with ensuring access to necessary goods and services, especially in critical areas like healthcare and technology.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •GTE exemptions exist for medical devices and drugs listed in Annexure-31 until March 31, 2027, based on recommendations from the Ministry of Health & Family Welfare.
- •Projects funded by Multilateral Development Banks (MDBs) or Bilateral Funding Agencies (BFAs) may have GTE requirements waived if the loan agreement specifies different procurement procedures. The Secretary of the relevant Ministry/Department approves GTE issuance in these cases.
- •Procurement of semiconductor equipment for manufacturing electronics and by public funded semiconductor and display fab facilities is exempt from GTE requirements until March 31, 2025.
- •CPSEs with international operations and Indian Missions abroad are exempt from the Rs 200 crore GTE limit for procurements outside India, provided they prioritize Indian procurement and exports.
- •Spare parts and accessories for machine systems can be procured together or separately under the medical device exemption.
Practical Example
The All India Institute of Medical Sciences (AIIMS), Delhi, needs to purchase advanced MRI machines. Because these machines fall under the list of medical devices exempted in Annexure-31 of the Manual, AIIMS does not need to float a global tender, even if the purchase exceeds the usual GTE threshold. Similarly, Bharat Electronics Limited (BEL), a CPSE, needs to purchase specialized communication equipment for its overseas operations in a joint venture in Singapore. The cost is ₹150 crores. Since this procurement is for use outside India, the ₹200 crore GTE restriction doesn't apply, provided BEL prioritizes sourcing components from India for export to Singapore.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a Global Tender Enquiry (GTE)?▼
Where can I find the list of medical devices and drugs exempted from GTE?▼
Who is the competent authority for approving GTE issuance for MDB/BFA funded projects?▼
Does the GTE exemption for medical devices include spare parts?▼
What does 'bona-fide procurements' mean in the context of CPSEs procuring outside India?▼
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 4.3.2 of the Manual for Procurement of Goods, 2017, until what date are exemptions for Medical Devices and Drugs (as listed in Annexure-31) provided, based on the reference from the Ministry of Health & Family Welfare?
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