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DPIIT changes norms to promote indigenous goods
Government tenders worth over Rs. 25,000 crore were either cancelled or modified and re-issued after the Department for Promotion of Industry and Internal Trade (DPIIT) stepped in to change their conditions to promote ‘Make in India’ goods, a top official said.
“The Department is taking every step for effective implementation of public procurement order, 2017, to promote ‘Make in India’ products,” the official said.
The government issued the order on June 15, 2017, to promote the manufacturing and production of goods and services in India and enhance income and employment in the country.
Urea plant
A tender worth Rs. 8,000 crore was withdrawn and re-issued with modified conditions after the intervention of the DIPP. The project was related to setting up of a urea and ammonia plant for gasification.
Similarly, a tender for the procurement of train set coaches was cancelled as the tender had certain restrictive conditions that were discriminatory against domestic manufacturers and favoured foreign players. The project cost was Rs. 5,000 crore.
A tender for Rs. 8,135 crore was modified with revised eligibility criteria for setting up of a 3×800 MW project. A tender worth Rs. 3,000 crore for Mumbai Metro was also modified.
The move assumes significance as concerns have been raised by certain quarters about the restrictive and discriminatory clauses being imposed against domestic manufacturers and suppliers in tender documents for public procurement.
The department had earlier held a series of meetings with concerned departments and Ministries including Steel, Railways, Defence, Oil and Gas, Pharmaceutical, Electronics, Telecommunications,Heavy Industries, Textiles, Shipping and Power in this regard.
“Directions were given to ensure strict compliance of the order in letter and in spirit. All nodal ministries were directed to ensure notification of local content,” the official added.
Under the Public Procurement (Preference to Make in India) Order, it was envisaged that all Central government departments, their attached or subordinate offices and autonomous bodies controlled by the Government of India should ensure purchase preference be given to domestic suppliers in government procurement.
Several departments and Ministries including pharmaceuticals and defence production have already identified several items that would have a minimum level of domestic content.
