Gujarat Procurement Policy Under Scrutiny Over High Turnover Requirements
What happened
The Request for Proposals for the BharatNet Phase-3 program requires the sole bidder or consortium to demonstrate a minimum audited average annual financial turnover of ₹4,700-crore over the last three financial years, which equates to 200% of the project's capital expenditure. This clause is reportedly contested by vendors and industry groups. A letter dated September 21, 2026, warned the GFGNL Managing Director about this excessive turnover filter.
From indiatimes.com
Why it matters
The state's special purpose vehicle (SPV) is allegedly implementing a policy that bypasses national guidelines, leading to the previous tender being scrapped. Domestic companies have argued that this entry barrier contradicts the Project Management Consultant's instructions and national policies.
From indiatimes.com
Who's involved
- GujaratThe state of Gujarat where the procurement body is located.
- Government of GujaratThe state government whose policies are being questioned regarding the procurement body.
- IndiaThe national infrastructure project whose procurement is affected by the policy.
- Government of IndiaThe national government whose norms are reportedly being contradicted by the state policy.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Government of IndiaSpeculative
The national government could face regulatory conflict as state policy allegedly contradicts national policy frameworks and Union funding norms.
How it developed
Newest first. Tap a step to see who reported it.- A turnover clause, stemming from Central Government Guidelines, is restricting market entry for firms operating in Gujarat.Sub-event
State procurement policy is influencing market operations in Gujarat.1 source
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The entities involved
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Gujarat
state of India
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