World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

It is indicated that "the GFRs and the manual are guidelines with no legal standing and therefore are not enforceable as law".

11. 
    Are these "guidelines" subject to any review mechanisms should they not be followed by the relevant contracting authorities? How can India ensure they are complied with? Could India please clarify which types of services and works are covered by the GFR?
    

Reply: 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. Besides internal controls, Comptroller and Accountant General of India, and the Central Vigilance Commission perform the oversight and ensure compliance. The details of GFRs are available on http://finmin.nic.in/the_ministry/
dept_expenditure/GFRS/GFR2005.pdf.

11. 
    To what extent is chapter 5 of the GFRs on "Works" relevant also in the context of chapter 6 on "Procurement of goods and services"? Does India have any plan for further reforms of its government procurement regulatory framework? In particular, are there any plans to harmonised the various procurement rules, directives, etc into one single piece of legislation and to subject all contracting authorities (whether at central or State level) to this? What is the timing for such reforms? Could India indicate where tenders are generally published? Are there any plans to create a centralised point of access to procurement information and opportunities in India?
    

Reply: Establishment of a legislative framework for public procurement is under consideration of the Government of India, but this will not change the Constitutional provisions on rights of the Centre and the States.

WTO's Secretariat Report, page 107, paragraph 225

The Report notes that "the rules and procedures framed by individual departments are based on their perceptions and interpretations of the GFRs".

11. 
    To what extent can individual departments depart from those guidelines? How can the Ministry of Finance ensure all central level entities follow those guidelines? What is the relevant regulatory framework for the procurement of services?
    

Reply: Rule 137, 160 and 161 of the General Financial Rules 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. Establishment of legislative framework for public procurement is under consideration of the Government of India. Besides internal controls, Comptroller and Accountant General of India, and the Central Vigilance Commission perform the oversight and ensure compliance.

WTO's Secretariat Report, page 107, paragraph 226

11. 
    How can suppliers be registered in DGSandD system? What are the registration requirements? Do they defer for foreign suppliers?
    

Reply: The detailed procedures and guidelines for registration of suppliers including foreign suppliers with DGSandD is given in DGSandD website www.dgsnd.gov.in link Registration Forms and Guidelines.

WTO's Secretariat Report, page 107, paragraph 227

11. 
    Could India explain how other bidders can obtain information about the results of the tender as well as how the tender was conducted? Could India explain further what type of negotiations may be conducted with the bidder offering the lowest price? Under which circumstances?
    

Reply: Such details can be provided on specific request from the tenderer, though tenders are opened publicly in the presence of the suppliers. There should normally be no post tender negotiation. If at all negotiations are warranted under exceptional circumstances, then it can be with lowest tenderer only. The exceptional circumstances include procurement of proprietary items, items with limited source of supply and items where there is suspicion of a cartel formation.

WTO's Secretariat Report, page 107, paragraph 228 and Table III.27

The report provides information on the different procurement methods.

11. 
    Could India further explain whether these are only procurement methods for those contracting authorities subject to the GFRs or whether these are common to all procuring entities?
    

Does the term "open tender" under GFRs means that only domestic but also foreign suppliers are eligible to participate in a tender?

What is the difference between "open tenders" and "global tenders".

Which criteria are used when determining that it is not in the public interest to procure goods through open tender, and thus to use limited tendering. Who takes such a decision and can it be appealed before an independent review body?

Reply: Yes, all central miniseries are subject to GFRs. Unless specifically indicated in the tender notice/document, both domestic and foreign suppliers can participate against open tender.

As per GFRs 2005, invitations to tenders by advertisements should be used for procurement of goods of estimated value of Rs 2.5 million and above so as to get a wide response. This advertised tender enquiry is called an open tender enquiry. This is usually in the domestic context. Where the ministry/department feel that it is necessary to look for suitable competitive offers from abroad, the requirement is publicized globally. Publicizing the requirement globally is known as advertising a global tender enquiry.

GFR 2005 and the procurement manual are available at: http://finmin.nic.in/the_ministry/
dept_expenditure/GFRS/GFR2005.pdf and http://www.du.ac.in/fileadmin/DU/DUCorner/
MPProc4ProGod.pdf, respectively.

WTO's Secretariat Report, page 109, paragraph 231

11. 
    Could India explain the criteria used by DGSandD to set the list of eligible suppliers? Are there any specific requirements for foreign suppliers?
    

Reply: The eligibility criteria used by DGSandD include mandatory registration with DGSandD for both indigenous and foreign suppliers. If any additional eligibility criteria is used, same may vary from case to case and will be stipulated in the tender which includes possession of special plant and machinery, past experience in successful execution of similar store.

WTO's Secretariat Report, page 109, paragraph 231

India retains preferential treatment for micro and small enterprises (MSEs)

11. 
    Could India provide its definition of micro and small enterprises? Could India provide further details, definition and a list of what are "central public sector enterprises" (CPSEs)? Could India confirm that the preference system for CPSEs does not exist since 31 March 2008?
    

Reply: Section 7(1) of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 categorized the enterprises in to manufacturing and services, which are further classified as micro, small and medium enterprises (MSMEs) based on the investments in "plant and machinery" and in "equipment" respectively as under:

1. 
   in the case of the enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951, as:
   

1.