Centre grants BHEL five-year GFR exemption for 21 items

The Department of Expenditure (DoE), Ministry of Finance, has granted Bharat Heavy Electricals Limited (BHEL) a five-year relaxation under Rule 144(xi) of the General Financial Rules (GFR). The exemption allows procurement of 21 specified items from entities in countries sharing land borders with India. 

BHEL confirmed the development in a rumour verification filing to BSE Limited on March 31, 2026, following a query on a news report dated March 27, 2026. The process began in December 2025 when the DoE, through BHEL’s administrative ministry, asked the company to identify items sourced from non-land-border countries solely due to GFR restrictions. BHEL submitted its response on January 6, 2026, with the formal exemption issued about three months later.

Rule 144(xi) of the GFR restricts procurement from entities in countries sharing land borders with India unless prior government approval is obtained. The provision forms part of measures to regulate participation of suppliers from such countries in public procurement. The exemption indicates that for the 21 items, domestic or alternative sources from non-restricted countries are either unavailable or not viable at the required scale.

BHEL did not disclose the list of items covered under the relaxation and stated that no regulatory or legal proceedings are pending in relation to the matter.