Global tender enquiry (GTE): the Rs 200 crore rule

Under GFR Rule 161(iv)(a), a ministry or department that thinks goods of the required quality may not be available in the country can send the tender notice to Indian embassies abroad and to foreign embassies in India, to look for competitive offers from abroad. That is a global tender enquiry. For an Indian bidder it means foreign competition, and a different set of mechanics: the same rule says e-procurement need not be insisted on, and Rule 161(vi) sets the minimum bid time at four weeks, not three, where the department also contemplates bids from abroad.

It also changes who may bid. Under the Make in India order of 19 July 2024 (para 3(b)), only Class-I and Class-II local suppliers are eligible in central procurement, except when a global tender enquiry has been issued. In a global tender enquiry, non-local suppliers may bid alongside them.

Since the Department of Expenditure order of 15 May 2020, Rule 161(iv)(b) says no global tender enquiry is to be invited for tenders up to Rs 200 crore, or such limit as the Department prescribes. Below that limit a ministry may record its detailed justification and seek prior approval; the Department named the Secretary (Coordination), Cabinet Secretariat as the competent authority on 28 May 2020. The Manual for Procurement of Goods (2024, para 4.3.2) adds that a domestic open tender must have been floated after 15 May 2020 before a proposal is entertained.

So a global tender below Rs 200 crore is an exception, and the notice usually rests on an approval or a listed exemption. The Manual lists several: specialised research equipment for educational and research institutes (approved by the Secretary of the ministry concerned), spares and consumables bought on nomination from the original manufacturer, projects funded by multilateral development banks, and listed medical devices and drugs until 31 March 2027. The exemptions lift the GTE restriction only; the local content preferences still apply.

In a global tender, foreign bidders may quote and be paid in rupees or freely convertible currencies, but prices for goods or services performed or sourced in India, including agency commission, must be in rupees. Indian bidders quote in rupees only. Foreign currency offers are converted at the bill currency selling rate on the bid deadline, and offers are compared on the total outgo of the buyer, including customs duty, IGST and cess (Manual, para 7.5.2). A low foreign headline price is therefore not the figure that is ranked against yours.

The mistake is to treat a global tender as something only importers answer, or to read it as a normal domestic tender. Indian firms can bid, but they must read the submission mode in the notice, which may not be an e-procurement portal, and the price basis. Where an Indian agent is involved, the Manual (para 4.3.3) says either the agent for the foreign principal or the principal directly may bid, but not both.