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Engaging with NISG
As per the policy laid down at the time of its formation, NISG’s clientele is limited to Central Government Ministries and Departments; State Government Departments; and Public Sector Undertakings. NISG may work with International Development Agencies (Such as World Bank, UNDP, DFID) when the end recipient of that service is the Government. NISG does not enter into any revenue-generating engagements with the Private sector.
Since its inception in 2002, NISG has provided services to several Central Ministries and State Governments and has been associated with 18 of the 27 MMPs. All the engagements executed by NISG so far have been awarded on a nomination basis only. As a policy and practice, NISG does not participate in any bidding process. The general practice adopted by all the departments/organizations is to get specific internal approvals by the competent authorities.
NISG's Performance Appraisal
NISG’s performance as an organization and its employee performance are not based on financial results alone. Its work, revenue, expenses, and bottom line are scrutinized by the board on the following crucial parameters:
Impact of the engagements on service delivery to citizens
Formal & informal feedback from the Government on NISG engagements
Whether non-profit spirit & guidelines are adhered to in project costing, revenue & expenses
Whether all procurement has been transparent and as per the procedures
How effectively the PPP spirit is maintained
While there are no specific incentives, promotions or bonuses to NISG employees based on the project revenues or NISG bottom line; NISG is expected to be a self-sufficient organization.
Some Additional Facts:
NISG is recognized by Indian tax authorities and statutory & regulatory bodies as a non- profit service-oriented organization and is entitled for TDS exemption for government departments and service tax exemption for any grants-in-aid engagements.
Whenever NISG associates with any schemes funded by grants-in-aid or during program management engagements, NISG is mandated to provide a Utilization Certificate for the expenses incurred.
Lastly, as per the ruling of the Information Commission of India, NISG is considered as a public Institution and comes under the purview of the RTI Act. The above internal policies being paramount, this is a formal mechanism to validate NISG’s commitment to transparency and neutrality.
Relevant General Financial Rules (GFR) Provisions
GFR does provide for the selection of consultants by nomination basis with adequate justification.
Rule 194 (iv) states “Under some special circumstances, it may become necessary to select a particular consultant where adequate justification is available for such single-source selection in the context of the overall interest of the Ministry or Department. Full justification for single-source selection should be recorded in the file and approval of the competent authority obtained before resorting to such single-source selection”.
Rule 204 states "Procurement of Non-consulting services by nomination. Should it become necessary, in an exceptional situation to procure a non-consulting service from a specifically chosen contractor, the Competent Authority in the Ministry or Department may do so in consultation with the Financial Adviser. In such cases the detailed justification, the circumstances leading to such procurement by choice and the special interest or purpose it shall serve, shall form an integral part of the proposal.
Rule 172(1) Advance payment to supplier: Ordinarily, payments for services rendered or supplies made should be released only after the services have been rendered or supplies made. However, it may become necessary to make advance payments for example in the following types of case:
(ii) Advance payment demanded by firms against fabrication contracts, turn-key contracts etc.
Such advance payments should not exceed the following limits:
(b) Forty per cent. of the contract value to a State or Central Government agency or a Public Sector Undertaking.
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