ESIC circular U-25/12/MattersrealtedtoprocurementissuesinESICInstitutes/2026/Med-V [1723233] / 330 · 27 Oct 2026
Official title
Clarification regarding procurement Of Medicines and Consumables including Implants not available on GeM - reg
Official record
Open source pageSummary
Check the official recordESIC institutions may procure medicines, consumables, and implants through alternative modes when items are not available on the GeM portal or DG-ESIC Rate Contract. Permissible alternative modes include Central or State Government Rate Contracts, PMBI Jan Aushadhi, local empanelled chemists, local market purchase, or other government agencies. Institutions must obtain a GeM Non-Availability Report or SCoGeM decision before using alternative channels. Staff must record the justification for urgency, non-feasibility of standard channels, and rate reasonableness on file. Procurement must follow GFR 2017 rules, including the prohibition against splitting requirements to avoid higher authority sanction thresholds. Institutions must maintain compliance with CVC guidelines and ESIC procurement policies.
What you must do
Key dates
Who is affected
Thresholds
[Image omitted. See the official document.] कर्मचारी राज्य बीमा निगम (श्रम एवं रोजगार मंत्रालय, भारत सरकार) EMPLOYEES' STATE INSURANCE CORPORATION (Ministry of Labour & Employment, Govt. of India)
[Image omitted. See the official document.] मुख्यालय Headquarters' पंचदीप भवन सी॰ आई॰ जी॰ रोड, नई दिल्ली-110002 PANCHDEEP BHAWAN, C.I.G. MARG, NEW DELHI-110 002 Phone: 011-23604700 Email: dir-gen@esic.nic.in Website: www.esic.nic.in / www.esic.in
F.No.: U-25/12/MattersrealtedtoprocurementissuesinESICInstitutes/2026/Med-V [1723233] / 330
Date: 26-10-2026
To,
Subject: Clarification regarding procurement of Medicines and Consumables including Implants not available on GeM - reg.
Representations have been received from various ESIC Institutions regarding the issues being faced in the procurement of Medicines & Consumables through GeM.
In this regard, attention is invited to Rules 147 and 149 of the General Financial Rules (GFR), 2017 (as amended).
Rule 149 provides for mandatory procurement through GeM in respect of goods and services available on the portal.
Further, Rule 147 provides for making alternative procurement arrangements in respect of goods and services not available on GeM, in accordance with the applicable rules and instructions.
Accordingly, where the required items are not available on GeM and DG-ESIC Rate Contract, procurement may be undertaken through other permissible modes, such as Central/State Government Rate Contracts, PMBI (Jan Aushadhi), Local Empanelled Chemists, Local Market Purchase, Other Government Agency or any other mode of procurement permissible under the GFR, 2017 (as amended), subject to the prescribed procedure and assessment of the suitability, availability and reasonableness of rates.
In cases of genuine urgency, exigency or stock-out situations, institutes may adopt an alternative procurement method only to the extent permissible under the applicable rules, exemptions, ESIC instructions and delegated financial powers. The urgency of the requirement, non-feasibility of procurement through the otherwise applicable channel, proper justification for selecting the alternative source and the reasonableness of the rates shall be duly recorded on file, along with the requisite approvals and supporting documents. Such procurement shall not be treated as a general exemption from the prescribed procurement procedure.
However, the total requirement shall be assessed as a whole and shall not be split into smaller quantities or piecemeal purchases with the objective of avoiding the sanction of the higher authority required with reference to the estimated value of the total demand, in accordance with Rule 157 of the GFR, 2017.
Moreover, the prescribed GeM Non-Availability Report/Certificate, SCoGeM decision or other approval/documentation, wherever required under the applicable instructions, shall be obtained and kept on record before proceeding with procurement through an alternative mode.
All ESIC Institutions shall ensure compliance with the GFR, 2017, applicable instructions of the Department of Expenditure and GeM, CVC guidelines, ESIC Procurement Policy, relevant DG-ESIC Rate Contract instructions and other orders issued by the Government of India and ESIC from time to time. Due diligence shall be exercised to ensure transparency, competition wherever applicable, quality, timely availability of supplies and reasonableness of rates.
Copies of the available orders/instructions regarding exemptions granted to ESIC in respect of medicines and consumables are enclosed for reference and necessary compliance.
This issues with the approval of the Competent Authority.
[Image omitted. See the official document.] 26/10/26
Deputy Medical Commissioner
(RC & PC Cell)
ESIC Headquarter, New Delhi
