Manual of Goods Procurement
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Sample questions
From the departmental-exam question corpus. These have not been through RankRacer's answer-verification gate — check the rule itself before relying on one.
1.Which Article of the Constitution of India stipulates that contracts legally binding on the Government must be executed in writing by officers specifically authorised to do so?
- A.Article 266
- B.Article 299
- C.Article 300
- D.Article 149
Explanation
Correct Answer: B) Article 299 Para 1.1: "At the apex of the Statutory framework governing public Procurement is Article 299 of the Constitution of India, which stipulates that contracts legally binding on the Government must be executed in writing by officers specifically authorised to do so." The Constitution also enshrines Fundamental Rights with implications for public procurement — in particular Article 14 (Right to Equality before Law) and Article 19(1)(g) (Right to practice any profession, or to carry on any occupation, trade, or business).
2.Consider the following statements regarding the legal framework of public procurement in the Central Government:\n1. There is a law exclusively governing public procurement in the Central Government.\n2. Comprehensive Rules and Regulations are available in the General Financial Rules (GFR), 2017, especially Chapters 6 to 9.\n3. The Indian Contract Act of 1872 and the Sale of Goods Act of 1930 are significant legislations governing contracts of sale/purchase of goods.\nWhich of the statements given above are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Explanation
Correct Answer: B) 2 and 3 only Statement 1 INCORRECT (Para 1.1): "In the Central Government, there is no law exclusively governing public procurement." Statement 2 CORRECT: "However, comprehensive Rules and Regulations in this regard are available in the General Financial Rules (GFR), 2017 (especially chapters 6 to 9); Delegation of Financial Powers Rules (DFPR); Government orders regarding purchase preference/ restrictions..." Statement 3 CORRECT: "...the Indian Contract Act of 1872 and the Sale of Goods Act of 1930 are significant legislations governing contracts of sale/ purchase of goods in general." Other mercantile laws that may be attracted include the Arbitration and Conciliation Act 1996, Mediation Act 2023, Competition Act 2002 and IT Act 2000.
3.In the Government of India, the nodal authority responsible for public procurement policy — including issue of procurement manuals and Model Tender Documents, their revision, interpretation and clarification — is:
- A.Department for Promotion of Industry and Internal Trade (DPIIT)
- B.The Procurement Policy Division, Department of Expenditure, Ministry of Finance
- C.The Comptroller and Auditor General of India
- D.Directorate General of Supplies and Disposals
Explanation
Correct Answer: B) Procurement Policy Division, Department of Expenditure, Ministry of Finance Para 1.2: "The Procurement Policy Division, Department of Expenditure, Ministry of Finance would be the nodal authority for this Manual's revision, interpretation, and clarification." The PPD was created to encourage uniformity and harmonisation in public procurement by disseminating best practices, providing guidance, oversight and capacity building, and issuing procurement manuals and Model Tender Documents. However, "the Centralisation of Procurement or involvement in procurement processes is not the intended purpose of the creation of PPD" (Para 1.10.1).
4.Which of the following enactments form part of the legal framework governing public procurement of goods in India?\n1. The Indian Contract Act, 1872\n2. The Sale of Goods Act, 1930\n3. The Competition Act, 2002\n4. The Arbitration and Conciliation Act, 1996\nSelect the correct answer using the code given below:
- A.1 and 2 only
- B.1, 2 and 3 only
- C.1, 2 and 4 only
- D.1, 2, 3 and 4
Explanation
Correct Answer: D) 1, 2, 3 and 4 Para 1.1 (Legal Framework): In the absence of an exclusive law governing public procurement, the framework comprises, inter alia: • The Constitution of India — Articles 298-299 (contracts), Article 14 (equality/legitimate expectation) and Article 19(1)(g); • The Indian Contract Act, 1872 and the Sale of Goods Act, 1930 — the major legislations governing contracts of sale/purchase; • The Competition Act, 2002 — against anti-competitive practices such as bid rigging and cartelisation; • The Arbitration and Conciliation Act, 1996 (with the Mediation Act, 2023) — dispute resolution; along with the Prevention of Corruption Act, 1988, the IT Act, 2000, the RTI Act, 2005, the CVC Act 2003, and administrative frameworks — GFR 2017, DFPR, Manuals and Government orders.
5.Consider the following statements regarding the applicability of the Manual for Procurement of Goods, 2024:\n1. It applies to all Procuring Entities covered by Rule 1 of GFR, i.e., all Central Government Ministries/Departments, attached and subordinate bodies.\n2. It applies to autonomous bodies except to the extent that the bye-laws of an autonomous body provide separate Government-approved procurement guidelines.\n3. For CPSEs, Public Sector Banks and Public Sector Insurance Companies, deviations from the Manual's guidelines may be approved by their competent authority, e.g., the Board of Directors.\nWhich of the statements given above are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Explanation
Correct Answer: D) 1, 2 and 3 Para 1.3: "This Manual shall apply to all Procuring Entities covered by Rule 1 of GFR, i.e., all Central Government Ministries/Departments, attached and subordinate bodies. These provisions shall also apply, as per the same rule, to autonomous bodies except to the extent that the bye-laws of an autonomous body provide separate procurement guidelines that the Government has approved... [and to] bodies substantially owned or controlled by or receiving substantial financial assistance from the Central Government (inter-alia, CPSEs... PSBs... PSICs... FIs...), except to the extent deviations that have been approved by their competent authority (e.g., Board of Directors)." Even approved deviations must retain fundamental provisions relating to the Constitution, Preferential Procurement Policies, GTE and Land Border restrictions.
6.For procurements done and used outside India in the host country's local currency, Indian Missions abroad may adopt the GFR financial limits/thresholds by converting them using:
- A.The RBI reference exchange rate on the date of procurement
- B.The latest INR-PPP conversion rates for the local currency as published by the IMF
- C.The SBI TT selling rate
- D.The exchange rate notified by the Ministry of External Affairs annually
Explanation
Correct Answer: B) Latest INR-PPP conversion rates published by the IMF Para 1.3-4(a): "Indian Missions and CPSE units abroad may adopt General Financial Rules (GFRs) financial limits/ thresholds of procurements... by using latest INR-PPP conversion rates for the local currency as published by the IMF (International Monetary Fund). For convenience, such converted limits/ thresholds may be reviewed annually." Even if procurement is in a currency other than the local currency, the thresholds shall be in terms of the INR-PPP conversion rate for the local currency only. If IMF does not publish the PPP rate for the local currency, conversion may be done to the most relevant currency in consultation with the Financial Advisor.
7.Consider the following statements regarding projects financed by International Funding Agencies (IFAs):\n1. The Government's procurement guidelines are not applicable to projects funded by the World Bank using the Investment Project Financing (IPF) instrument — the IFA's own procurement procedures apply instead.\n2. IFA-specific procurement procedures for such projects are permitted under Rule 264 of GFR 2017.\n3. For projects financed using Program-for-Results (PforR) of the World Bank and Results-Based Lending (RBL) of the Asian Development Bank, the Government's procurement guidelines apply as expressly agreed in the legal agreements.\nWhich of the statements given above are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Explanation
Correct Answer: D) 1, 2 and 3 Para 1.3-9: "These guidelines would not be applicable to projects funded by the World Bank using the Investment Project Financing (IPF) instrument and similar instruments of other International Funding Agencies (IFA). IFA's specific procurement procedures shall be applicable as permitted under Rules 264 of GFR 2017. However, for the projects financed using instruments such as Program-for-Results (PforR) of the World Bank, and Results-based lending (RBL) of the Asian Development Bank... the application of these guidelines as expressly agreed in the legal agreements shall be followed."
8.The procurement guidelines applicable to Central Government procuring entities do NOT apply to which one of the following?
- A.Procurement outsourced to a procurement support agency
- B.Procurement bundled with other contractual arrangements
- C.Procurements by procuring entities for their own use from their subsidiary companies, including Joint Ventures where they have a controlling share
- D.Procurement carried out on the GeM portal
Explanation
Correct Answer: C) Procurement from own subsidiaries/JVs with controlling share Para 1.3-8 (Exemptions): "These procurement guidelines would not apply to procurements by procuring entities... for their own use from their subsidiary companies, including Joint Ventures, where they have a controlling share." By contrast (Para 1.3-6): "These procurement guidelines would continue to apply if these procuring entities outsource the procurement process, bundle the procurement process with other contractual arrangements, or utilise the services of a procurement support agency or procurement agents." Platforms like GeM/GePNIC must also conform to the Procurement Guidelines.