In a major boost for India’s scientific community, the Union Ministry of Finance has revised procurement rules to help research institutes acquire equipment and materials more swiftly. The move is expected to accelerate innovation and reduce delays that often hamper research progress.
According to a fresh order issued on Friday, the ministry’s Department of Expenditure has amended provisions under the General Financial Rules (GFR), increasing financial thresholds and simplifying procedures for government-funded research institutions.
The new guidelines remove the requirement for heads of public research institutes—including directors and vice-chancellors of science and defence organisations—to obtain multiple quotations for purchases of scientific equipment and consumables valued up to ₹2 lakh. Previously, this limit stood at ₹1 lakh.
Additionally, the financial cap for procurements made by institutional purchase committees has been raised from ₹10 lakh to ₹25 lakh. These committees—typically comprising the principal, senior faculty members, and administrative staff—are responsible for meeting the routine operational needs of research facilities, covering items ranging from laboratory consumables and electronic equipment to basic infrastructure enhancements.
Under the existing system, mandatory tendering processes often delayed the acquisition of essential equipment, sometimes stretching timelines to months or even years. The relaxed rules are expected to provide institutes greater flexibility and autonomy, helping them respond more rapidly to emerging research needs.
Union Science and Technology Minister Jitendra Singh hailed the updated GFR as a “landmark step” toward facilitating smoother research operations. “This will reduce delays and enhance autonomy and flexibility for research institutes, empowering them to innovate faster,” Singh said.
Expanded Tendering Options
The government has also increased the threshold for using the limited tender enquiry (LTE) route from ₹50 lakh to ₹1 crore. Through LTE, tenders can be invited from a select pool of pre-approved suppliers, allowing quicker procurement of specialised goods.
Meanwhile, public advertisement of tenders—known as advertised tender enquiry—will now be mandatory only for procurements of ₹1 crore and above, up from the previous limit of ₹50 lakh. This change allows mid-range procurements to bypass the lengthier public tender process.
For urgent or highly specialised procurements, research institutes can continue using single tender enquiry, wherein they approach a single supplier directly.
Strengthened Authority for Global Tenders
In a significant empowerment of institutional leadership, vice-chancellors and directors of public research institutes can now independently approve global tender enquiries (GTE) for procurements worth up to ₹200 crore. This authority was previously subject to approvals from higher levels such as the Cabinet Secretariat or the relevant ministry, particularly for orders below ₹200 crore.
The move is expected to streamline access to cutting-edge scientific equipment and global expertise while maintaining the flexibility to support domestic manufacturing goals under the Make in India initiative.
Commenting on the changes, economist and author Sanjeev Sanyal called the GFR revision a “long-standing demand” aimed at fostering ease of conducting scientific research.
“Rules for procurement of scientific equipment eased for government-funded institutions. This was a long-standing demand for ease-of-doing-science,” he noted in a social media post.
Boosting Research and Innovation
With these changes, government-funded research institutes across India can expect to expedite the procurement of sophisticated equipment and essential materials—critical for staying at the forefront of global research.
By reducing administrative hurdles, the government aims to cultivate a more dynamic and responsive research environment, helping scientists and innovators address complex challenges with greater agility.