World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: Issue of India commencing accession to GPA is under examination. At present, any commitment on this issue is not feasible.

WTO's Secretariat Report, page 106, paragraph 220

It is indicated that "the Central Government has set reservations and price preferences as part of the procurement system".

11. 
    Could India provide a full list of those reservations and price preferences, as well as a detailed explanation of their objectives and scope? Also, could India indicate whether these reservations and preferences are temporary?
    

Reply: Transparency and fairness in GP are values that have stand alone significance for India purely in the domestic context. We are engaged in improving our procurement systems. However, carve outs and offsets are essential for the development of the sensitive sectors in a developing economy like India, and has been availed of even by other GPA signatories. The Central Government, through administrative instructions, has reserved certain products for procurement from MSMEs and KVIC etc. For example, 358 products belonging to respective industry sectors are reserved for procurements from micro and small enterprises (MSEs) by state/central ministries/departments/PSUs. Instructions relating to price preference/reservation for procurement of certain items/categories of suppliers are issued by certain ministries/departments such are D/o Public Enterprises and M/o Micro, Small and Medium Enterprises.

WTO's Secretariat Report, page 106, paragraph 221

11. 
    What is the scope of the "control and oversight functions" carried out by the central authorities listed by India? Do all States have similar systems?
    

Reply: Besides internal controls, Comptroller and Accountant General of India, and the Central Vigilance Commission perform the oversight. Similarly, in the state governments, Accountant General and the State Vigilance Commission monitor such procurement activities. Public procurement is regulated through a series of executive directives which supplements the regulations (e.g. the directives issued by Vigilance Commission from time to time).

WTO's Secretariat Report, page 106, paragraph 222

11. 
    Do these procedures only concern disputes over contract compliance in a particular procurement? How are disputes over the tendering process and award of a particular contract resolved? Does the Indian domestic law provide for the possibility to challenge a bid? To what extent can foreign suppliers make use of these processes?
    

Reply: Yes, these procedures only concern disputes over contract compliance in a particular procurement. Presently, the disputes over the tendering process and award of particular contract are resolved by addressing the grievances to the higher authority of organization and if it is not resolved satisfactory, the supplier can appeal to the competent court. The same grievance redressal mechanism is available to the foreign supplier also.

WTO's Secretariat Report, page 107, paragraph 224

11. 
    Which are the procuring entities that are subject to the central procurement level? Are all subject to the whole list of rules and directives listed in this paragraph? Which is the regulatory framework applied to public private partnerships? Which rules apply to public purchasing by entities in the utilities sector, such as for the generation and distribution of electricity, gas, oil and water, as well as in the transport sectors?
    

Reply: Procuring entities at the Central level are primarily the central government ministries/departments, central public sector enterprises/undertakings which operate own commercial line. The General Financial Rules (GFR) 2005 and the procurement manuals contain the basic principles of public buying. Chapter 6 of the General Financial Rules, 2005 contains general rules applicable to all ministries or departments regarding procurement of goods, engagement of consultants and outsourcing of services. Detailed instructions relating to the procurement of goods can be issued by the procuring ministries/departments in conformity with the general rules contained in this chapter.