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Understanding Recent Procurement Reforms in India’s Scientific Community

Key Changes to Enhance Research Efficiency and Autonomy

Understanding Recent Procurement Reforms in India’s Scientific Community

  • 28 Jun, 2025
  • 442

Key Procurement Reforms Transforming Indian Science

The Indian government has instituted significant reforms in procurement processes to enhance scientific research efficiency. These changes affect major procurement instruments including:

  • General Financial Rules (GFR)
  • Government e-Marketplace (GeM)
  • Global Tender Enquiry (GTE)

Historically, these systems were known for bureaucratic delays and red tape, hampering timely scientific purchases.

Changes to General Financial Rules

One of the notable adjustments involves the limits set by the GFR:

  • The Direct Purchase Limit (Rule 154) has been increased from ₹1,00,000 to ₹2,00,000.
  • The Local Purchase Committee (LPC) Limit (Rule 155) has been raised to ₹5,00,000, allowing for greater discretion in purchases.

These adjustments facilitate faster and simpler procurement processes for routine laboratory items, eliminating the need for lengthy tender procedures.

Benefits of Reduced Tender Reliance

With the new regulations, approximately 90% of research-related purchases can now proceed without tendering. This shift drastically reduces delays, which previously stretched up to 2–3 months. Such improvements are crucial for time-sensitive research, where delays can result in data loss or missed experimental opportunities.

Global Tender Enquiry Revisions

Changes to the GTE procedures empower institutional leaders, such as Directors and Vice-Chancellors, to approve tenders up to ₹200 crore without needing multiple central approvals. This streamlines the import of high-end equipment that is not available domestically.

Flexibility in Procurement Platforms

Institutions now enjoy the flexibility to procure from outside the GeM platform if it does not provide high-quality scientific items. This change allows scientists to avoid inferior alternatives and purchase from specialized suppliers, enhancing research quality.

Necessity for Reform

The previous procurement limits were inadequate for real-world scientific needs, with essential reagents often exceeding established thresholds. The prior rules prioritized accounting safety over the urgency required in scientific endeavors. Delays led to degraded samples, lost grants, and inferior research outcomes.

International Comparison

Globally, researchers in countries like the USA and various European nations enjoy greater autonomy in procurement. India’s shift towards decentralized decision-making and trust-based post-audit systems aligns its practices more closely with international research governance standards.

Overall Benefits to India’s Scientific Ecosystem

  • Accelerated decision-making processes
  • Enhanced quality of research materials
  • Improved reproducibility and global competitiveness
  • Reduced bureaucratic burden on emerging researchers

Implementation Challenges

Despite these positive changes, several challenges lie ahead. Institutional heads must ensure transparency and efficiency, while procurement teams need to swiftly update their procedures. Additionally, it is vital to inform and encourage vendors to engage through newly established channels.

Long-Term Impacts of the Reforms

The anticipated long-term outcomes of these reforms include:

  • A significant boost to India’s ambition of becoming a global scientific powerhouse
  • Empowerment of scientists through increased autonomy
  • Better utilization of grants, quicker publications, and heightened innovation output

Frequently Asked Questions (FAQs)

Q1. What are the key procurement reforms introduced in India?
Answer: The Indian government has reformed procurement processes through updates to the General Financial Rules, Government e-Marketplace, and Global Tender Enquiry to enhance efficiency and reduce delays in scientific purchases.

Q2. How do the changes in GFR facilitate faster procurement?
Answer: The increase in Direct Purchase and Local Purchase Committee limits allows for quicker purchases without the need for lengthy tender procedures, expediting the acquisition of necessary research materials.

Q3. Why is reduced reliance on tenders beneficial for research?
Answer: It allows nearly 90% of research-related purchases to proceed without tendering, significantly reducing delays crucial for time-sensitive scientific experiments and research.

Q4. What does the flexibility in procurement platforms mean for researchers?
Answer: Researchers can now procure high-quality scientific items from sources outside the Government e-Marketplace, ensuring access to specialized suppliers and avoiding generic alternatives.

Q5. What are the expected long-term impacts of these procurement reforms?
Answer: The reforms are expected to enhance India's scientific capabilities, empower researchers, improve grant utilization, and foster greater innovation and faster publication rates.

UPSC Practice MCQs

Question 1: What is the revised Direct Purchase Limit under the GFR?
A) ₹1,00,000
B) ₹2,00,000
C) ₹5,00,000
D) ₹10,00,000
Correct Answer: B

Question 2: Who can now approve Global Tender Enquiries up to ₹200 crore?
A) Central Government
B) Institutional Heads
C) Procurement Teams
D) Vendors
Correct Answer: B

Question 3: What percentage of research purchases can be made without tendering?
A) 70%
B) 80%
C) 90%
D) 100%
Correct Answer: C

 

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