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Key Points

The Central government has significantly simplified procurement rules for scientific equipment and consumables, providing greater financial autonomy to research institutions. Under the new General Financial Rules (GFRs), organizations can now purchase scientific instruments worth up to Rs 2 lakh without requiring quotations, a substantial increase from the previous Rs 1 lakh limit. This policy change will directly benefit research organizations, universities, and startups across multiple scientific departments, including science, technology, biotechnology, and medical research. The move is expected to accelerate research processes, reduce bureaucratic delays, and create a more flexible environment for innovation.

Key Points: Centre Boosts Research Funding with Simplified Procurement Rules

  • Finance Ministry doubles procurement limits for scientific equipment
  • Research institutions gain more financial flexibility
  • Purchase committees can now procure equipment worth Rs 25 lakh
  • Global tender approvals expanded to Rs 200 crore
2 min read

Centre raises financial threshold for procurement of scientific equipment, consumables

Government raises financial limits for scientific equipment procurement, empowering research institutions and startups with enhanced autonomy

"A landmark step enabling #EaseOfDoingResearch - Dr. Jitendra Singh, Union Minister"

New Delhi, June 7

The Central government has raised financial limits under the General Financial Rules (GFRs) for procurement of scientific equipment and consumables.

The simplification of GFRs will reduce delays and enhance autonomy and flexibility for the research organisations.

Under the new rules, the Finance Ministry said that Vice Chancelors, Dierectors and academic institutions under specified departments and ministries will be able to make non-Government e-Marketplace (GeM) procurement of scientific equipment and consumables.

As per the notification of the Finance Ministry, the institutions can now procure scientific instruments and consumables worth up to Rs 2 lakh without the need for quotations. The earlier limit was Rs 1 lakh, which is now doubled by the Centre.

Similarly, under the new rules, purchase committees can procure equipment worth Rs 25 lakh. The financial ceiling for such purchases was Rs 10 lakh.

In addition, vice-chancellors and directors can give nods to the global tenders enquiring up to a value of Rs 200 crore.

The move will play a pivotal role in facilitating researchers, startups and innovators, said Union Minister Dr Jitendra Singh in a post on the social media platform X.

"Here is some heartening news and a major breakthrough for young aspiring #StartUps, Innovators and Researchers: In a landmark step enabling #EaseOfDoingResearch, the GFR rules have been simplified for procurement of scientific equipment and consumables," Union Minister Singh added in the X post.

"This will reduce delays and also enhance autonomy and flexibility for research institutions--empowering them to innovate faster," the post added.

As per the Finance Ministry, the new rules will be applicable to the authorities in departments and ministries such as science and technology, biotechnology, scientific and industrial research, atomic energy, space, earth sciences, and health research, including the Indian Council of Medical Research.

According to the notification, apart from the above-mentioned departments, the Defence Research and Development Organisation (DRDO), the Indian Council of Agricultural Research (ICAR), and its affiliated universities and institutes offering postgraduate and doctoral-level programmes under any ministry or department will also benefit from the relaxed rules.

- ANI

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Reader Comments

R
Rajesh K.
This is a much-needed reform! Our research institutions were stuck in bureaucratic red tape for years. Doubling procurement limits will help scientists focus on innovation rather than paperwork. Hope to see more such progressive steps from the government. 🇮🇳
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Priya M.
Good move but implementation is key. Many institutes still face delays in payments even after procurement. The government should also streamline the payment process to vendors. Still, a step in the right direction for Make in India and research!
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Amit S.
As someone working in a govt research lab, this is a game-changer! Earlier we'd lose months just getting approvals for basic equipment. Now with ₹25L limit for purchase committees, we can actually respond to research needs in real-time. Kudos to PM Modi's vision for research reforms!
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Sunita R.
While the increased limits are welcome, I hope there's proper auditing. We don't want another situation where funds are misused. The ₹200 crore global tender limit seems quite high - hope VCs use this power responsibly. Transparency should accompany autonomy.
V
Vikram J.
Finally! Indian researchers can compete globally without being held back by our own systems. The ₹2L no-quote limit is perfect for urgent lab consumables. Just hoping this extends to state universities too - they need these reforms the most! #ResearchRevolution
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Neha T.
Great for STEM fields, but what about humanities research? They also need funding flexibility. Hope this isn't just for 'hard sciences'. India needs holistic research development. The ₹25L limit should apply across all disciplines equally.

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