(1) The procuring entity shall not establish any requirement aimed at limiting participation of bidders in the procurement process that discriminates against or among bidders or against any category thereof, except when authorised or required to do so by this Act or the rules or guidelines made thereunder or by the provisions of any other law for the time being in force.
(2) The State Government may, by notification in this behalf, provide for mandatory procurement of any subject matter of procurement from any category of 10 bidders, and purchase or price preference in procurement from any category of bidders, on the following grounds, namely:-
(a) the promotion of domestic industry;
(b) socio-economic policy of the Central Government or the State Government;
(c) any other consideration in public interest in furtherance of a duly notified policy of the Central Government or the State Government:
Provided that any such notification shall contain a reasoned justification for such mandatory or preferential procurement, the category of suppliers chosen and the nature of preference provided.
(3) The procuring entity, when inviting the participation of bidders in the procurement process, shall declare whether participation of bidders is limited pursuant to this section and on what ground and any such declaration may not ordinarily be later altered.
(4) Nothing in this section shall be construed as preventing the State Government or any procuring entity from imposing or enforcing measures limiting participation on account of the need -
(a) to protect public order, morality or safety;
(b) to protect human, animal or plant life or their health;
(c) to protect intellectual property;
(d) to protect the essential security and strategic interest of India.