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In a landmark move to boost scientific research and innovation, the Finance Ministry of India recently announced a series of reforms easing the procurement norms for scientific equipment. This policy shift addresses long-standing grievances from the research community about sub-standard materials, procedural delays, and restricted autonomy due to rigid procurement rules under the Government e-Marketplace (GEM).

Background: Challenges with GEM Procurement

The GEM portal, launched to promote “Make in India” procurement, mandated government institutions to source all goods through it. However, scientists highlighted serious concerns about its inefficiency, especially the inability to procure high-quality, customised scientific instruments required for cutting-edge research. Delays in procurement approvals and the necessity to first prove non-availability on GEM further hindered project timelines and research output.

Key Policy Reforms and Amendments

To rectify these issues, the government amended the General Financial Rules (GFR), introducing the following major changes:

• Exemption from GEM Mandate:
  • Select scientific institutions and universities are now allowed to procure equipment and consumables outside the GEM portal.
  • This restores procurement autonomy to Directors, Vice-Chancellors, and Chancellors—similar to the pre-GEM era—enabling timely purchases from specialised, quality vendors.
• Enhanced Financial Autonomy:
  • Without Quotation: Procurement limit increased from ?1 lakh to ?2 lakh for direct purchases.
  • Purchase Committee Limit: Raised from ?10 lakh to ?25 lakh, enabling quicker institutional decision-making.
  • Tender Enquiry Ceiling: Enhanced from ?50 lakh to ?1 crore, facilitating mid-level procurements efficiently.
  • These changes reflect inflation adjustments and reduce the administrative burden on research institutions.
• Global Tender Enquiry (GTE):
  • Directors and Vice-Chancellors are now authorised to approve GTEs up to ?200 crore, a responsibility earlier restricted to departmental Secretaries.
  • This decentralisation helps avoid bottlenecks and streamlines large-scale procurements critical for advanced R&D.

Strategic Relevance and Broader Objectives

These reforms are strategically aligned with India’s aspirations under Atmanirbhar Bharat and its goal to emerge as a global science and technology leader. By reducing bureaucratic hurdles, enhancing institutional autonomy, and ensuring timely access to world-class research tools, the reforms empower innovation across sectors like health, defence, space, and agriculture.

Institutions benefitting from these measures include:

• Department of Science and Technology (DST)
• Department of Biotechnology (DBT)
• Council of Scientific and Industrial Research (CSIR)
• Department of Atomic Energy (DAE)
• Indian Council of Medical Research (ICMR)
• Indian Council of Agricultural Research (ICAR)
• Defence Research and Development Organisation (DRDO)
• Postgraduate research institutions under central and state universities

Conclusion

The revised GFR norms signify a progressive policy intervention aimed at creating a facilitative research ecosystem in India. By streamlining procurement, restoring institutional trust, and removing operational roadblocks, the government has responded positively to the scientific community's demands. As acknowledged by Science Minister Jitendra Singh, this reform is not just administrative; it is transformative—unlocking India's potential for innovation and scientific excellence.