1 | P a g e 2

CIRCULAR

Ref: OIL 62/C&P/ANB/02/ 2020 Date : 6th June’2020

Sub: Policy for inviting domestic tenders below 200 Cr and processing

of tenders in view of prevailing market conditions across the globe

due to Covid- 19

Reference is invited to recent announcement of Hon’ble Finance Minister

under the scheme of “Aatma Nirbhar Bharat Abhiyaan” which disallows

global tender for government procurement up to Rs 200 crore. Accordingly,

Ministry of Finance vide notification no. 12/17/2019-PPD dated 15.05.2020

amended clause no. 161(iv) of the GFR 2017 disallowing Global Tenders up to

Rs. 200 Crore except some inevitable cases.

2.0 Executive Council ( EC) of Oil India Limited in its 69th EC meeting held on

28th May’2020 at OIL’s office, Noida discussed the matter and after due

deliberation EC approved to adopt the following policy for inviting domestic

tenders below 200 Cr and processing of tenders in view of prevailing market

conditions across the globe due to Covid- 19.

(i) Processing of tenders considering current market condition :

Considering the present economic distress across the globe arising out of pandemic Covid-19 diseases, all tenders including the ongoing

Tenders which are not yet finalised, shall be categorized Vital, Essential and Desirable and decision of procurement of these tenders to be taken by respective sphere heads up to value Rs. 10

Lakh and beyond Rs. 10 Lakh, note to be put up to the Concerned functional Director with details justification to get “In Principle” administrative approval and based on “In Principle”

administrative approval, final procurement approval shall be taken by Competent Purchasing Authority as per DOP.

Plot No. 19, Sector 16A, Noida – 201301,

U.P.

Phone: 0120 –2419000, 2419200

Fax: 0120-2488310

E-mail: corp_c&p@oilindia.in

Web Site: www.oil-india.com

2 | P a g e 2

(ii) Processing of Global Tenders up to 200 crores :

Irrespective of above, no Global Tender Enquiry shall be invited for tenders up to Rs. 200 Crores (except OEM/ Emergency cases). In

exceptional cases where there are special reasons for inviting Global Tender below Rs 200 crore, prior approval of Competent Purchase Authority not below concerned Functional Director shall be

obtained by spheres while recording detailed justification for resorting to Global Tender.

The ongoing Global tenders which are not yet finalized but under different stages of finalization approval of concerned Functional

Director with recoding of detailed justification shall be obtained.

(iii) EC further advised to send a list of goods and services with appx

annual procurement value which are not currently available

indigenously and floating of Global tender for these Goods & services

are inevitable, to the Ministry for seeking exemption. EC also advised

to take efforts to make these goods & services

available indigenously as per the Govt Scheme of “Atma Nirbhar

Bharat Abhiyaan”.

Copy of the minute of the 69th EC meeting( Agenda No.3) is attached.

3.0 Accordingly, this circular is issued to follow the above directives as

approved by EC meticulously by all concerned.

4.0 A standard Operating Procedure (SOP) in order to follow the above

policy/directives of EC is attached as Annexure – I for guidance of all

concerned.

(Anita Dam)

General Manager (C&P)

For Chairman & Managing Director

CC : CMD

: D (HR&BD) / D(E&D)/ D ( F) / D( O)

: RCE / ED( F&A)/ ED(KGB&BEP) /ED (E&D) / ED(RF) / ED(C&P)

CGM(PHQ)/CGM( F&A), CORP/ CGM(KOLKATA)

: All Executives of C&P Departments of all spheres

Page 1 of 4

ANNEXURE –1 TO CIRCULAR NO. OIL 62/C&P/ANB/02/2020 DATED

06.06.2020

STANDARD OPERATING PROCEDURE (SOP) FOR GUIDANCE TOWARDS

ADOPTION OF THE POLICY APPROVED BY THE EXECUTIVE COUNCIL FOR

INVITING DOMESTIC TENDERS BELOW 200 CR AND PROCESSING OF

TENDERS IN VIEW OF PREVAILING MARKET CONDITIONS ACROSS THE

GLOBE DUE TO COVID- 19

1.0 PREAMBLE :

Executive Council (EC) of Oil India Limited in its 69th EC meeting held on 28th

May’2020 at OIL’s office, Noida inter-alia has approved the following policy for

inviting domestic tenders below 200 Cr and processing of tenders in view of

prevailing market conditions across the globe due to Covid- 19:

(i) Processing of tenders considering current market condition:

Considering the present economic distress across the globe arising out of pandemic Covid-19 diseases, all tenders including the ongoing Tenders which are not yet finalised, shall be categorized Vital, Essential

and Desirable and decision of procurement of these tenders to be taken by respective sphere heads up to value Rs. 10 Lakh and beyond Rs. 10

Lakh, note to be put up to the Concerned functional Director with details justification to get “In Principle” administrative approval and based on “In Principle” administrative approval, final procurement approval

shall be taken by Competent Purchasing Authority as per DOP.

(ii) Processing of Global Tenders up to 200 crores :

Irrespective of above, no Global Tender Enquiry shall be invited for tenders up to Rs. 200 Crores (except OEM/ Emergency cases). In

exceptional cases where there are special reasons for inviting Global Tender below Rs 200 crore, prior approval of Competent Purchase Authority not below concerned Functional Director shall be obtained by

spheres while recording detailed justification for resorting to Global Tender. The ongoing Global tenders which are not yet finalized but under

different stages of finalization approval of concerned Functional Director with recoding of detailed justification shall be obtained.

Page 2 of 4

2.0 In order to adopt the above policy, following guidelines / standard

operating procedure ( SOP) are suggested:

2.1 Processing of tenders considering current market condition

(i) This will be applicable for all tenders i.e. ongoing tenders which are

not yet finalised as well as for forthcoming new tenders. Henceforth,

this will be termed as “tender”. The “old tenders” which were

finalised and LOAs were issued before 02.06.2020 (i.e. date on which

the EC minutes was approved and circulated) will not come under the

purview of this policy.

(ii) The tenders shall be categorised as “Vital”, “Essential” and

“Desirable” based on criticality of the goods & services for

operation as under:

(a) Vital: Most Critical Goods & Services and non-availability of

this category of Goods/Services on-time will lead to operational

crisis.

(b) Essential: These goods/services are essential & critical and

non-availability of these goods/services on-time may not

hamper continuation of operation but might affect on quality of

the service/operation. Also, stock out cost of these goods will

be very high.

(c) Desirable: These are desirable goods & services and Less

Critical/Non-Critical in nature. The non-availability of these

goods/services on-time shall not directly impact on operation

as well as the quality of services/operation. The stock-out or

shortage causes only a minor disruption for a short duration.

(iii) The detailed justification for procurement and categorisation under

three categories as above shall be determined by the User/Indentor.

The justifications may also include delivery time, source whether

Foreign or Domestic, Statutory clearance, License, Complexity of the

tender which may impact on overall lead time, apart from Criticality

of the Goods & services.

(iv) The decision for procurement against tenders up to value Rs. 10 Lakh

shall be taken by the respective Sphere Heads. The proposal will be

put up by HOD of the User/Indenting department through concerned

Page 3 of 4

ED ( if reporting to ED otherwise HOD) for “In Principle”

administrative approval of RCE/Sphere Head.

(v) Tender value above Rs. 10 Lakh, note to be put up by HOD of the

User/Indenting department through their ED/Sphere Head to the

Concerned Functional Director with detailed justification to obtain

“In Principle” administrative approval. The tender value of Rs.10

lakh as referred above shall be exclusive of all applicable taxes and

duties.

(vi) Notwithstanding above, all other approvals including award of

contracts/orders (after obtaining “In Principle” approval ) against

such tenders are to be sought from the respective Competent

Approving Authority as per DOP.

Note for 2.1:

a) Preferably, Proposals should be put up on weekly basis to

RCE/Functional Director consolidating the cases in hand.

b) Cases where price bids are already opened and are in different stages

of approval as per DoP shall be processed in parallel; however, Letter

of Award shall be issued only after obtaining “In Principle”

administrative approval.

c) Cases where price bids are not opened but in different stages of

tender processing, price bids are to be opened only after obtaining

“In Principle” administrative approval.

2.2 Processing of Global Tenders up to 200 crores:

(i) As per minute of the meeting held under Chairmanship of Hon'ble

Minister, PNG and Steel on 27.05.2020 at 11.00 am to review

decisions of Committee of Secretaries (COS) on localisation policy,

Procurement of products manufactured in India will be

considered as domestic procurement and not from vendor-base

in India.

(ii) No Global Tender Enquiry shall be invited for tenders up to Rs. 200 Crores.

In exceptional cases, where there are special reasons for inviting Global

Tender below Rs 200 crore, prior approval of Competent Purchase Authority

not below concerned Functional Director shall be obtained by the Spheres

justifying the reasons for resorting to Global Tender.

Page 4 of 4

(iii) In case of OEM (proprietary) and Emergency cases (declared

emergency), no prior approval for floating Global Tender is required.

(iv) However, floating of Global tenders may be resorted to with prior

approval of Functional Director in exceptional cases with special

reasons like no Indian Bidder is available with requisite capacity etc.

(v) The ongoing Global tenders which are not yet finalized but under

different stages of finalization, approval of concerned Functional

Director with recording of detailed justification shall be obtained.

(vi) The note to the Functional Director shall be put up by User/Indentor

through their concerned ED ( if reporting to ED, otherwise HOD) and

C&P head of respective spheres with detailed justifications.

(vii) Notwithstanding above, all other approvals including award of

contracts/orders against such tenders are to be sought from the

respective Competent Approving Authority as per DOP.

Note for 2.2:

a) Preferably, Proposals should be put up on weekly basis to Functional

Director consolidating the cases in hand.

b) Global cases where price bids are already opened and are in different

stages of approval as per DoP shall be processed in parallel, however,

Letter of Award shall be issued only after obtaining approval from

Functional Director”.

c) Cases where price bids are not opened but in different stages of

tender processing, price bids are to be opened only after obtaining

approval from concerned Functional Director.

--------------xxxxx--------------