Para 1.3 - Applicability | KartavyaDesk
Original Rule Text
1.3. Applicability of this Manual 1. This manual is applicable to the procurement of "Non-consultancy Services" (including “Outsourcing of Services”) as defined in the ‘Procurement Glossary section’. For any circumstances not covered in this manual for procurement of non-consulting services, the Procuring Entity may refer to the Manual for Procurement of Goods, 2024. (Rule 206 of GFR, 2017). For the sake of brevity, this Manual refer to some of the sections of the Goods Manual without reproducing them. 2. Procuring Entities: This Manual shall apply to all Procuring Entities covered by Rule 1 of GFR, i.e., all Central Government Ministries/Departments, attached and subordinate bodies. These provisions shall also apply, as per the same rule, to autonomous bodies except to the extent that the bye-laws of an autonomous body provide separate procurement guidelines7 that the Government has approved. 3. Statutory Bodies and CPSEs: These guidelines shall also be applicable to bodies substantially owned or controlled by or receiving substantial financial assistance from the Central Government (inter-alia, Central Public Sector Enterprises (CPSEs or undertakings, including their subsidiary companies/ Ventures); Public Sector Banks (PSBs); Public Sector Insurance Companies (PSICs); Public Sector Financial Institutions (FIs); Constitutional or Statutory Bodies, Public Academic Institutions (National/ Central institutes), and Commissions that have been created under the Constitution of India or specific legislations), except to the extent deviations7 that have been approved by their competent authority (e.g., Board of Directors) 4. Indian Missions and CPSE Units Abroad: While the applicability of the Manual in the case of Indian Missions abroad and CPSE Units abroad shall be as per sub-para 2) and 3) above, respectively – the following is clarified: a) Adopting Financial Limits/ Thresholds in Local Currency: For procurements done and for use outside India, in the host country’s local currency, Indian Missions and CPSE units abroad may adopt General Financial Rules (GFR) financial limits/ thresholds of procurements (as mentioned in this Manual at various instances, e.g., selection of mode of Procurement etc.) by using latest INR-PPP conversion rates for the local currency as published by the IMF (International Monetary Fund). For convenience, such converted limits/ thresholds may be reviewed annually. Even if the Procurement is to be done in a currency other than the local currency, the applicable financial limits/ thresholds of procurements shall be in terms of the INR-PPP conversion rate for the local currency only. If the IMF does not publish the PPP conversion rate for local currency, then the conversion may be done to the currency most relevant to that mission/ unit in consultation with the Financial Advisor.
What This Means
Para 1.3 of the Manual for Procurement of Non-Consultancy Services explains who needs to follow this manual. Basically, if you're buying services that aren't consulting (like cleaning, security, or data entry), this manual tells you how to do it. If something isn't covered here, you can look at the Manual for Procurement of Goods for guidance. This manual applies to all Central Government departments, ministries, and their attached offices. It also covers autonomous bodies, unless they have their own approved procurement rules.
This rule also extends to organizations that are largely owned or funded by the Central Government, such as CPSEs, Public Sector Banks, and even some academic institutions. However, these organizations can deviate from the manual if their own governing bodies (like the Board of Directors) have approved different procedures. For Indian Missions and CPSE units operating abroad, they can use local currency equivalents of the financial limits mentioned in the manual, using exchange rates published by the IMF. This helps them manage procurement in a practical way within their host countries.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •This manual applies to the procurement of Non-Consultancy Services, as defined in the Procurement Glossary.
- •It covers all Central Government Ministries/Departments, attached and subordinate bodies, and autonomous bodies (with exceptions).
- •Statutory Bodies and CPSEs are also covered, subject to approved deviations by their competent authority.
- •Indian Missions and CPSE Units abroad can use local currency equivalents of financial limits based on IMF INR-PPP conversion rates.
- •If something isn't covered in this manual, refer to the Manual for Procurement of Goods, 2024 (Rule 206 of GFR, 2017).
Practical Example
The Ministry of Culture needs to hire a company to manage the security at a national museum. This falls under 'Non-Consultancy Services'. According to Para 1.3, the Ministry must follow the guidelines in this manual. If the estimated cost of the security contract is ₹15 lakhs, they need to follow the appropriate procurement procedures outlined in the manual for that value.
Now, consider a CPSE, Bharat Electronics Limited (BEL), a defense PSU, also needs to procure similar security services for one of its manufacturing plants. BEL is also governed by this manual, but its Board of Directors has approved a slightly different procurement process for contracts below ₹20 lakhs. In this case, BEL can follow its own approved process, as long as it's consistent with the overall principles of transparency and fairness.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What if my autonomous body has its own procurement rules?▼
Does this manual apply to CPSEs?▼
How do Indian Missions abroad handle financial limits in local currency?▼
What if the IMF doesn't publish a PPP conversion rate for the local currency?▼
If a situation arises that is not covered in this manual, where do I look for guidance?▼
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 1.3 of the Manual for Procurement of Non-Consultancy Services, which of the following entities MUST adhere to the guidelines outlined in the manual?
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