In June 2025, Government of India (GoI) has raised the financial limits for the procurement of scientific instruments and consumables by various scientific institutions, including those pursuing research in the defence sector, to reduce delays and simplify the process of procurement.
- The Special Provisions under the General Financial Rules (GFRs) have been amended by the Ministry of Finance (MoF), with an aim to advance scientific research and innovation.
Key Amendments:
i.The Vice Chancellors and Directors of various Research and Development (R&D) institutions will be able to purchase scientific equipment and consumables (single-use research material or those with a limited lifespan) for research purposes up to Rs. 2 lakhs without seeking any quotations.
- Earlier, the limit was up to Rs. 1 lakh.
ii.The financial limit for procurement by purchase committees of public research institutes has been increased from Rs.10 lakhs to Rs.20 lakhs.
- The purchase committees, with the principal, senior faculty, and administrative staff as members, help procure goods and services to meet the operational needs of research institutions.
- It varies from washrooms and biometric attendance machines to computers and electronics or consumables required in laboratories.
iii.The financial limits for procuring goods using the Limited Tender Enquiry (LTE) and advertised tender enquiry have been increased to Rs. 1 crore from the existing Rs. 50 lakhs.
iv.Vice Chancellors and Directors have been designated as competent authorities to approve the issuance of a global tender enquiry up to Rs. 200 crores for the procurement of scientific equipment and consumables required only for research purposes.
Key Points:
i.The amendments to the GFR will apply to the departments such as Science and Technology, biotechnology, scientific and industrial research, atomic energy, space, earth sciences, health research, including the Indian Council of Medical Research (ICMR).
ii.The Defence Research and Development Organization (DRDO), Indian Council of Agricultural Research (ICAR) and its affiliated institutions and universities, and educational and research institutes conducting Post-Graduate (PG), Doctorate level courses or research under any ministry/ department will also benefit from the amended GFR.
About General Financial Rules (GFR):
i.The General Financial Rules (GFR) is a set of guidelines issued by the MoF, GOI, to regulate and manage public finances efficiently.
- It comprises the rules for procurement, Investment and asset management, Grants-in-aid, Budget Management, Receipts and Recoveries, Accounts and Audit.
ii.It was first issued in 1947 and has been subsequently revised.
iii.The current rule, GFR 2017 was issued in March 2017 and replaced the previous GFR 2005.
About the Ministry of Finance (MoF):
Union Minister – Nirmala Sitharaman (Rajya Sabha – Karnataka)
Minister of State (MoS) – Pankaj Chaudhary (Constituency – Maharajganj, Uttar Pradesh, UP)
