Govt Notifies Guidelines on Deals With Foreign Entities, Including Governments

The government has notified guidelines regarding agreements/memorandum of understanding (MOU) with foreign governments/private entities not covered in the rules of business, 1973. The Cabinet Division has stated that it has, time and again, been receiving queries for agreements/MoUs with foreign governments/private entities that are not covered in the Rules of Business, 1973. To clarify such queries, an Inter-Ministerial meeting was held to discuss in detail the procedure for entering into MoUs/Agreements with private entities of foreign countries. It was also considered as to which entities fall under the definition of “Government” and “Foreign Government”. The following recommendations were formulated: All entities like state-owned corporations/autonomous bodies/public sector enterprises etc. which are under the administrative control of a Government Department/body are included in the definition of the Government. All these entities require approval of the Cabinet before entering into any MoU/Agreement/Protocol etc. with a foreign country. Similarly, all entities like state-owned corporations/ autonomous bodies/public sector enterprises that are under the administrative control of a Foreign Government Department/body are included in the definition of the Foreign Government. If a government department or entity desires to enter into an Agreement/MoU with a private entity of a Foreign Country, provided its statute or rules authorize this action the parent Ministry of that entity is responsible for taking this decision and completing all codal formalities like consultations with concerned Ministries/Departments. If the Minister-In-charge of the Division concerned finds any such MOU/Agreement important enough, he may bring it for discussion in the Cabinet in terms of rule 16(l)(k) of the Rules of Business, 1973 or may bring it to the notice of the Prime Minister for further orders. The Public Sector Universities when entering into an MoU/Agreement with a foreign University, must consult the Higher Education Commission (HEC) first and then in case of concurrence of the HEC bring it to the notice of its parent Ministry for endorsement. If the MoU/Agreement is to be signed, all relevant stakeholders like the Ministry of Foreign Affairs, Law & Justice Division, and Security Agencies may be consulted wherever required. The Secretaries of Ministries/Divisions are requested to ensure strict compliance with the mentioned guidelines before the start of negotiations, signing, and ratification of the International Instruments.