Public procurement referes to how government ministries, departments, PSUs and other public bodies buy goods, services and works from private or public suppliers. A Public Procurement Policy sets rules, preferences, and procedures for such purchases to ensure transparency, competition, value for money, and support to priority sectors (like MSMEs or domestic manufacturing). In India it is shaped by a mix of policy documents, orders, and acts rather than one single “Procurement Law”.
1. Public Procurement Policy for Micro & Small Enterprises (MSEs) Order, 2012 (amended later)
2. Make in India – Domestic Preference Rules (2017, amended 2020) gives preference to “local suppliers” based on local content in goods/services.
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3. GeM (Government e-Marketplace) : Online platform to bring transparency, efficiency, competition. Mandatory for most central purchases (goods & services above small thresholds).
4. Procurement Preference to Public Sector & Strategic Sectors : For certain strategic items (e.g., defence, railways, nuclear), domestic producers / PSUs get preference.
5. Transparency Rules : Manual for Procurement of Goods & Services (2022) by Ministry of Finance. E-tendering mandatory above set limits. Bid security / performance guarantee norms.
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