Restriction on Issuance of Letters of Credit in Procurement
ESIC circular U-16/30/9/2010-Procell/TN/32-Part(1)/E-396447 · 12 Jun 2026
Official title
Restriction on Issuance of Letters of Credit (LC) in Procurement-reg
Official record
Open source pageSummary
Check the official recordWhat changed
The Employees' State Insurance Corporation (ESIC) has issued a directive prohibiting the issuance of Letters of Credit (LCs) for procurement activities across all ESIC institutions. Institutions are instructed to restructure their procurement processes, particularly where services are a component, by incorporating payment terms that align with Finance and Accounts (F&A) guidelines. All institutional heads are mandated to ensure strict compliance with these instructions in all future bid documents, tender notices, purchase orders, and contracts.
What you must do
- Cease the issuance of Letters of Credit for procurement.
- Structure bid documents, purchase orders, and contracts with appropriate payment terms in accordance with F&A guidelines.
Key dates
Document text
U-16/30/9/2010-Procell/TN/32-Part(1)/E-396447 08-06-2026
To
All Deans - ESIC PGIMSRs, Medical & Dental Colleges and Hospitals All Medical Superintendents - ESIC Hospitals Director (Medical) Delhi/Director (Medical) Noida
Subject: Restriction on Issuance of Letters of Credit (LC) in Procurement-reg
Respected Sir/Madam,
Reference above subject and directions of the F&A, all ESIC Institutions are informed that Letters of Credit (LCs) shall not be issued, rather wherever services are a component of procurement, the payment terms should be accordingly modelled.
Accordingly, Bid/Tender documents, purchase orders, and contracts should be structured with appropriate payment terms in accordance with F&A guidelines. All institutional Heads are requested to ensure strict compliance with these instructions.
This issues with the approval of the competent authority.
Yours sincerely,
Dy. Medical Commissioner (RC & PC)
Copy to:
- All Zonal Medical Commissioners.
- PPS to DG/CVO/FC and PPS to MC(MA)/MC(ME)/MC(MS)/MC(PC).
- WCM, Hqrs with request for uploading on ESIC website U-16/30/9/2010-Procell/TamilNadu/32-Part(1) I/3982117/2026
Source details
- Source
- Employees' State Insurance Corporation
- Type
- circular
- Published by source
- 12 Jun 2026
- Document number
- U-16/30/9/2010-Procell/TN/32-Part(1)/E-396447
- Issuing division
- Dy. Medical Commissioner (RC & PC)
- Coverage area
- labour