Bhubaneswar: In a move aimed at strengthening national security and promoting self-reliance, the Odisha Government has revised its procurement policies by amending the Odisha General Financial Rules (OGFR).
The new provisions empower the state to restrict procurement from bidders associated with countries that are considered a potential threat to India’s security and defence interests.
Though no countries have been named directly, the changes are in line with the Centre’s broader Atmanirbhar Bharat initiative. One of the key highlights of the amendment is the introduction of stricter eligibility conditions for bidders.
The state government can now exclude bidders from nations sharing a land border with India if they do not meet specified national security guidelines. This aligns Odisha’s procurement framework with the Government of India’s directives on sensitive procurement.
The updated rules also introduce structural reforms for better procurement efficiency. Procurement activities are now clearly categorised into four types — goods, consultancy services, non-consultancy services, and works. This classification aims to streamline government purchases and improve clarity in processes.
Further, IT projects will now be treated as consultancy services due to the variations in deliverables, making the procurement of such services more adaptable.
Another major change is the provision for parallel contracting — allowing up to five vendors to be awarded contracts at the L1 (lowest bidder) rate.
This is especially useful for bulk supply needs where one vendor may not have the capacity to fulfil large orders alone.
The new rules also emphasise transparency. For consultancy services valued over ₹50 lakh, departments must now issue an Expression of Interest (EoI) before shortlisting candidates.
Additionally, local purchase committees have been introduced for purchases between ₹50,000 and ₹3 lakh.
The revised policy continues to support local enterprises including MSMEs and startups, offering them purchase preferences and relaxations — subject to prior approval from the Finance Department.
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