Background

• Under the Atma Nirbhar Bharat Abhiyan announced in May, the government had barred its departments from issuing global tenders for contracts worth ₹200 crore or less.
• The General Financial Rules were amended to disallow global tender enquiries in such procurement of goods and services, with an eye on boosting the prospects of domestic micro, small and medium enterprises. 
• Any Ministry seeking an exemption to the norm, in order to call for a global tender enquiry, is required to seek the Cabinet Secretariat’s prior nod.
• So far, Ministries’ requests could be considered if they gave valid justification for the need to issue a global tender and the lack of alternatives within the country.

Why in News?

• The government has tightened its procurement norms to make it tougher for Ministries to pursue global tenders for contracts worth up to ₹200 crore.
• Now, Ministries can no longer seek a nod for issuing a global tender unless they have first floated a domestic tender for their requirements, and tried to locate domestic producers in co-ordination with industry bodies.
• Moreover, departments also cannot submit exemption proposals unless they have first published their procurement plan for the next three and five years on their websites.

Reference:

1. https://www.thehindu.com/business/Industry/govt-orders-priority-for-local-tenders/article33172190.ece