Para 7.4.5 - Currency Bids | KartavyaDesk
Original Rule Text
Manual for Procurement of Non-Consultancy Services, 2025 such as US Dollars, Euros, Pound Sterling, Yen, other relevant currencies 73 , or a combination thereof. However, prices for incidental goods/works (including Agency Commission) performed or sourced in India must be quoted and paid for in Indian Rupees. Indian bidders are required to quote in INR only. All offers are to be converted to Indian Rupees based on the “Bill currency selling” exchange rate on the bid submission deadline, quoted by a source as specified (if not specified, authorised exchange bankers approved by RBI) in the tender document.
What This Means
Para 7.4.5 of the Manual for Procurement of Non-Consultancy Services, 2025, deals with how bids should be quoted and converted to Indian Rupees (INR) when dealing with foreign currencies. Essentially, if you're buying services from a foreign company, they can quote their prices in currencies like US Dollars, Euros, or Yen. However, any part of the service that involves goods or work done in India, including any commission paid to an agent, must be quoted and paid for in INR. Indian companies bidding on these projects must always quote in INR.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Foreign bidders can quote in foreign currencies (USD, EUR, etc.).
- •Goods/works performed in India must be quoted and paid in INR.
- •Indian bidders must quote in INR only.
- •All foreign currency bids must be converted to INR for evaluation.
- •Conversion uses the 'Bill currency selling' exchange rate on the bid submission deadline.
Practical Example
The Ministry of Jal Shakti is procuring a water purification system from AquaGlobal, a German company. AquaGlobal quotes €500,000 for the system itself. However, installation requires local technicians and materials sourced in India, costing ₹50,00,000. AquaGlobal must quote the system price in Euros, but the installation costs must be quoted in INR. A separate Indian agent is paid a commission of ₹5,00,000, which also needs to be quoted and paid in INR. The Ministry then converts the Euro amount to INR using the 'Bill currency selling' exchange rate published by an authorized bank on the bid submission deadline to compare AquaGlobal's bid with other offers.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What exchange rate should be used for converting foreign currency bids to INR?▼
If a foreign company uses an Indian agent, in what currency should the agent's commission be quoted?▼
Can an Indian company quote in a foreign currency if they are partnering with a foreign firm?▼
What happens if the tender document doesn't specify a source for the exchange rate?▼
Does this rule apply to consultancy services?▼
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 7.4.5 of the Manual for Procurement of Non-Consultancy Services, 2025, which of the following currencies is explicitly permitted for foreign bidders to quote prices for services rendered outside India?
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