new Delhi. The Finance Ministry has amended the rules to encourage domestic industry by not involving foreign companies in government purchases up to Rs 200 crore. This information was given by Union Finance Minister Nirmala Sitharaman in a statement issued by the ministry after reviewing the progress of the self-sufficient India Economic Package. According to the statement, the Department of Expenditure has amended the General Financial Rules, current Rule 161 (P) of 2017 and GFR rules relating to global tenders, giving a major relief to the country's MSMEs (micro, small and medium enterprises). The Finance Ministry stated that now no global tender inquiry or Global Tender Inquiry (GTI) will be invited for tenders up to Rs 200 crore until prior approval from the Cabinet Secretariat.
The statement said that the Finance Minister has announced that all central agencies like the Ministry of Railways, Road Transport and Highways and CPWD will extend the time up to 6 months to fulfill contractual or contractual obligations, including obligations related to EPC and concession agreements. Are also included.
In this regard, the Department of Expenditure has issued instructions that the contract period can be reduced without imposing any expenditure or fine on the contractor or the concessionaire using the unforeseen circumstance or disaster related clause (FMC) due to Kovid-19 epidemic. -May be extended for three months and maximum six months.
The Ministry stated that instructions were also issued to the contractors or suppliers to refund the value of performance related security which would be proportionate to the contracted supply or the total contract value completed. It is being implemented by various departments and ministries.
The Finance Minister said that in view of the special circumstances, the Central Government has decided to increase the borrowing limit of the states from 3 percent to 5 percent for the year 2020-21 alone. This will provide additional resources of Rs 4.28 lakh crore to the states.
This post was published on July 13, 2020 11:39 am
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