Railways : Restrictions under Rule 144(xi) of GFR 2017 – Clarification regarding procurement of raw material, Components, sub-assemblies from vendors from land border countries

MINISTRY OF RAILWAYS
(RAILWAY BOARD)
No. 2020/RS(L)/779/2
New Delhi Dated: 19-03-2021.

The General Managers, All Indian Railways/PUs,
NF(C), CORE DG/RDSO/Lucknow, NAIR/Vadodara,
PCAO, DMW/Patiala, COFMOW CAO, WPO/Patna, RWP/ Bela.

Subject: Restrictions under Rule 144(xi) of GFR, 2017-Clarification regarding procurement of raw material, Components, sub-assemblies from vendors from land border countries.

Ref:

i. Ministry of Finance OM No. F.No. 6/18/2019-PPD dated 23/07/2020.

ii. Railway Board letter no. 2020/RS(G)/779/2 dated 06/08/2020.

iii. Ministry of Finance (Deptt. of Expenditure) OM no.F.18/37/2020-PPD dated 08-02-2021.

***

1.0 Ministry of Finance, vide OM at ref.i, had inserted Rule 144 (xi), in Rule 144 of the General Financial Rules, 2017. The OM alongwith the related Public Procurement orders referred above issued by Ministry of Finance, were circulated for compliance by Railway units (ref. ii above).

2.1 In partial modification of the above, Ministry of Finance (Deptt. of Expenditure) vide O.M. dated 08- 02-2021 (ref.iii above) (copy attached) has issued following clarification:

(i) A bidder is permitted to procure raw material, components, sub-assemblies etc. from the vendors from countries which share land border with India. Such vendors will not be required to be registered with the Competent Authority, as it is not regarded as “sub-contracting”.

(ii) However, in case a bidder has proposed to supply finished goods procured directly/indirectly from the vendors from the countries sharing land border with India, such vendor will be required to be registered with the Competent Authority.

This is issued with the concurrence of the Finance Directorate of the Ministry of Railways and with the approval of the competent authority .

DA: as above.

(Chandan Kumar)
Director Railway Stores/IC
Railway Board

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