This Office Memorandum, No. 15(2)FC-XV/FCD/2020-25, from the Government of India, Ministry of Finance, Department of Expenditure (Finance Commission Division), dated January 27, 2022, addresses the issue of Operational Guidelines for the implementation of the recommendations on Health Sector grants contained in Chapter 7 of the Fifteenth Finance Commission (FC-XV) Final Report. It refers to the Operational Guidelines issued on July 16, 2021 and Addendum dated September 7, 2021, regarding FC-XV recommended Health Sector grants.
Specifically, the memorandum clarifies that the State Level Committee (SLC) can decide on the procurement of approved diagnostic infrastructure, medical equipment, drugs, etc., involved in any Health Sector Grant components, potentially through centralized purchase at the State level. The aim is to ensure quality products at reasonable prices, following due processes. States must ensure that centrally procured items are delivered to the intended destination for installation/utilization. It also notes that medical equipment may be available on the Government e-Marketplace (GeM) and efforts should be made to procure these items from GeM.
The memorandum is addressed to the Secretary, MoH&FW, Govt. of India, Nirman Bhawan, New Delhi, and copies are sent to the Chief Secretaries of all States. The Director(FCD), Abhay Kumar, signed the document. The address of the Finance Commission Division is 11th Block, 5th Floor, CGO Complex, Lodi Road, New Delhi-110003.
Key Entities Referenced
Fifteenth Finance Commission (FC-XV) Final Report: Report containing recommendations on Health Sector grants, specifically Chapter 7, which this Office Memorandum provides operational guidelines for implementation of.
State Level Committee (SLC): Committee at the state level responsible for making decisions regarding the procurement of approved items for health sector grants.
Department of Expenditure: The issuing department within the Ministry of Finance responsible for the operational guidelines regarding the implementation of the Fifteenth Finance Commission's Health Sector grant recommendations.
Government e-Marketplace (GeM): A portal for online procurement of goods and services, recommended as a source for medical equipment procurement.
No. 15(2)FC-X V/FCD/ 2020-25
Government of India
Ministry of Finance
Department of I:xpenditure
(Finance Commission Division)
11th Block, 5th Floor,
CGO Complex, Lodi Road,
New Delhi- 110003.
Dated:- 27-01- 2022
Office Memorandum
Subject:-[ssue of Operational Guidelines for the implementation of the
recommendations on Health Sector grants contained in Chapter 7 of the
ifieenth Finance Commission (FC-XV)} Final Report - regarding.
Ref.:- Operational Guidelines issued by the Department of Expenditure vide O.
M. No. 15(2)FC-XV/FCD/ 2020-25, dated 16-07-2021 and Addendum
dated 07-09-2021 for the implementation of the FC-XV recommended
Health Sector grants.
Kind attention is invited to the para 8 (Procurement of medicine, medical
equipment, diagnostics and other consumables ete.) of the reference cited above. It
is clarified that State |.evel Committee (SLC) may decide about the procurement of
any of the approved items of diagnostic infrastructure, medica! equipment, Drugs
etc. involved in any of the components of the Health Sector Grant through a
mechanism which may include centralised purchase (at State Jevel) with the aim to
ensure purchase of quality products at rcasonable/competitive prices in an efficient
manner after following the due processes, procedures and practices. However, for
the centrally (at State level) procured items, the State (s) must ensure that the
selected vendors/companies do deliver the procured items at the intended
destination (where these are required to be installed/utilized).
Contd. on_page-2.-2-
2. Many of the medical equipments etc. might be available on Government ¢-
Marketplace (GeM). Therefore, efforts may be made to procure such items from
GeM.,
(Abhay Kumar)
Director(FCD)
‘The Sceretary. Moll&FW,
Govt. of India, Nirman Bhawan, New Delhi.
Copy to:-
(i) The Chief Secretaries of all States.