Now Reading: Finance Ministry eases consultancy tender norms for domestic firms
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Finance Ministry eases consultancy tender norms for domestic firms
The Finance Ministry has advised central government entities against prescribing excessively high turnover and payroll requirements in consultancy tenders on the Government e-Marketplace (GeM). A sample study of such tenders over the…
The Story in Brief
The Finance Ministry has advised central government entities against prescribing excessively high turnover and payroll requirements in consultancy tenders on the Government e-Marketplace (GeM). A sample study of such tenders over the last three financial years found that criteria like high turnover thresholds and disproportionate staff strength unduly restrict competition, the Department of Expenditure said in an office memorandum.
Industry experts welcomed the move, saying it will enable smaller Indian firms to compete for government contracts that were dominated by larger players. The memorandum asks procuring entities to follow the Manual for Procurement of Consultancy Services, 2025, and ensure eligibility criteria reflect actual project needs.
The Indian Opinion
This nudge from the Finance Ministry cuts through the narrative that only big firms can deliver complex consultancy assignments. While the advisory is sensible, the real test lies in how procuring entities interpret it: will they still find ways to favour incumbents by inserting soft biases? The number of small and medium domestic firms winning GeM consultancy contracts in the next fiscal year will reveal whether the intent translates into practice.
Sources (2): businesstoday.in, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
