Government of India
Ministry of Finance
Department of Expenditure
Public Procurement Division

Room.No. 516. Lok Nayak Bhawan,
New Delhi.
Dated: 22nd August,2016.


Subject: – Revision of Manual on Policies and Procedures for Purchase of Goods


The Manuals on Policies and Procedures for Purchase of Goods. Works and Consultancy were issued by this Department in 2006. These Manuals were prepared in conformity with the General Financial Rules, 2005 and contained broad generic Guidelines. To suit their local/specialized needs, Ministries / Departments were to supplement these manuals by issuing Detailed Operating Instructions; Checklists and customized formats to serve as practical instructions.

2. It has been now decided to revise these Manuals and the copy of the revised Draft Manual for Purchase of Goods is available on the website , Department Expenditure Procurement Policy Division. It has been also decided to initiate stakeholders’ consultation on the Draft Manual. In this context. Individuals. Industries Bodies and all other stakeholders are requested to review the provisions of the Draft Manual on Policies and Procedures of Goods and send their suggestions / comments at e‑mail I.D., with copy to within 15 days of the publication of this Notice in the website of Ministry i.e. latest by 7th September, 2016. The title of the e-mail must mention the subject as given above. Ministries/Departments are being separately requested to send their suggestions/comments in this regard. The suggestion should be given only in the following format:

Para No and Page Number Provisions in Manual on Policies & Procedures of Goods. Proposed changes Justification and reasons for Suggestions/Comments.

Vinayak T Likhar)
Under Secretary (PPD)

For Official Use Only

Procurement Policy Division

Department of Expenditure, Ministry of Finance, Government of India

Manual on Policies and Procedures For Procurement of Goods

Beta Draft



Every Government organization procures a wide variety of goods and services and executes works to perform the duties and responsibilities assigned to it. With a view to reduce scope for subjectivity and to improve objectivity and transparency in decision making, Government had prepared a set of three Manuals on Policies and Procedure for Procurement of Goods, Works and hiring of Consultants, in 2006 in conformity with the applicable directives contained in the new General Financial Rules, 2005. These Manuals laid out clear guidelines for Public Procurement in tune with the imperatives of a growing and liberalized economy. It was the intention to review these Manuals after some time. It has now been decided to undertake this exercise.

Government held a wide ranging consultation with Stakeholders and other interested agencies to map areas requiring improvement in the Manuals. Based on such consultations and feedback, these Manuals have been revised in consonance with the fundamental principles of transparency, fairness, competition, economy, efficiency and accountability and also taking into account the developments in the economy and the need to introduce quality in public procurement. Efforts have been made to cover all major aspects of procurement in these Manuals in a user-friendly manner.

The draft Manuals would be circulated to all Ministries / Departments, and their suggestions would be duly considered for making further changes.

Over a period of time, various Ministries may revise their policies/ rules/ guidelines/ documents, which have been relied upon in preparing this manual (e.g. GFR, DFPR, Integrity Pact, INCOTERMS etc or from Ministry of MSME; Ministry of Chemicals and Fertilizers; Ministry of Environment, Forest and Climate Change; Ministry of Health and Family Welfare , DGS&D, NIC, CVC, etc.). Therefore, with flux of time, the latest version of such basic documents may also be ascertained from the relevant official website.

Manuals issued by this Ministry are to be taken as generic guidelines, which have to be necessarily broad in nature. Ministries / Departments are advised to supplement these manuals to suit local/specialized needs, by issuing their own detailed Manuals (including customized formats); Standard Bidding Documents; Schedule of Procurement Powers and Checklists to serve as practical instructions for their officers and to ensure completeness of examination of cases.

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