BHUBANESWAR: Amid the push for Atmanirbhar Bharat and Make-in-India in view of the changing geopolitical scenario, the state government has amended Odisha General Financial Rules (OGFR), 2023 enabling restrictions on procurement from certain countries.
The amendments, notified by the Finance department on Thursday, authorised the state to bar procurement from bidders, who are either based in or have commercial arrangements with entities from countries or classes of countries that may pose a risk to the defence of the country or matters related to national security.
The newly substituted rule-203 stated that no procurement shall be made in violation of such restrictions. Although the amendment does not name any country, officials said, it is a preemptive measure in response to the current global environment and security-related concerns raised at the national level.
This change of rules came as part of a broader overhaul of the OGFR, aimed at increasing transparency, efficiency, and compliance in government procurement. The revised rules also sought to streamline procurement methods by formally categorising them into goods, services (consultancy and non-consultancy) and works.
The amended rules differentiated between the categories of products, including guidance for IT projects, which will now be procured as consultancy services. “Procurement of IT projects should normally be carried out as procurement of consultancy services, as the outcomes or deliverables vary from one service provider to another,” it read.
Another significant change is the provision for awarding contracts to multiple vendors at the L1 rate in cases where a single bidder cannot fulfil the required quantity due to capacity or time constraints. This parallel contracting method will allow orders to be distributed among up to five bidders based on pre-declared ratios in the bid document, the notification stated.
This apart, shortlisting norms for consultants, consulting and non-consulting services have been restructured. For consulting services valued above Rs 50 lakh, departments will have to publish an expression of interest (EoI), while a local purchase committee process will apply for procurement of goods costing between Rs 50,000 and Rs 3 lakh.
The OGFR allowed purchase preferences and relaxations for local micro, small and medium enterprises (MSMEs) and startups to support local businesses. However, all such incentives will have to receive prior approval from the Finance department based on the guidelines issued by the MSME department.
“In case the tendered value of a work, with estimated cost up to Rs 50 crore, exceeds the estimated cost by 10 per cent or more, approval of the next higher authority of the competent authority needs to be obtained before awarding the contract. If the administrative department is the competent authority, approval of the next higher authority will not be required,” the notification added.