Public Procurement - India

Mondaq Business BriefingIndia Law Articles in EnglishGovernment & Public Sector (2009)

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Public Procurement - India

This Chapter was first published in Getting the Deal Through

Public Procurement 2009 (Global Competition Review)

Legislative framework

1 What is the relevant legislation and who enforces it?

India has a federal constitution, with the responsibility for

governance divided between the central and state governments. The

Union List, the State List, and the Concurrent List in the Indian

Constitution govern the legislative functions of the central, union

and state governments. State procurement does not figure in any of

the lists as a distinct subject. Under such circumstances the Union

Parliament has the exclusive power to make any laws on the subject

of procurement. Parliament has not enacted any specific legislation

on the subject. Hence Public Procurement is performed through

Government policies. The subject is primarily covered by: the

General Financial Rules 1963, framed by the Ministry of Finance by

executive order, and the Delegation of Financial Powers Rules 1978

(again framed by the said Minis...

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