Public Procurement refers to the procurement done by certain agencies ,either direct government agencies or those using the power of the government and have to act like government such as the Public sector enterprises.

Public procurement differs from private procurement on some specific aspects :

  • Public procurement has to be transparent and follow the applicable national policies

  • Various government agencies and also press and public keep a watch on Public procurement

  • There is no separate Public procurement law in India

  • There are only General Financial Rules (GFR) , The Indian Contract Act, 1872 and the Sale of Goods act,1930

  • They guide Public procurement

  • GFR has since been updated ,revised and restructured w.e.f. 1st july,2005

  • Comprehensive manuals of policies & procedures for procurement of goods ,works and engagement of consultants with public fund have been evolved and are presently available in the website of ministry of Finance



The tenets of Public procurement are provided below :


Transparency in Public procurement
Acceptable Supplier / Offer
Single Tender Enquiry (STE)
Limited Tender Enquiry (LTE)
Open Tender Enquiry (OT)
Global Tender Enquiry (GT)
Procedure For Tender Evaluation
Reasonableness of Price
Contract Management

See Presentation on Public Procurement here