Centre amends public procurement norms to allow more local content

Our Bureau New Delhi | Updated on September 18, 2020 Published on September 18, 2020

Disallows participation by entities from countries that bar Indian companies in their procurement process

The Centre has made changes to the public procurement rules allowing nodal ministries and departments to raise the minimum local content requirement for two categories of local suppliers, earlier fixed at 50 per cent and 20 per cent, according to an official statement circulated on Friday.

The amendment, made earlier this week, also disallows participation in the procurement process by entities from countries that bar Indian companies from being part of their government procurement process in any item.

Order amended

The Public Procurement (Preference to Make in India) Order, 2017 has been amended enabling nodal ministries/departments to notify higher minimum local content requirement for Class-I and Class-II local suppliers which was earlier fixed at 50 per cent and 20 per cent, respectively, the statement from the Commerce & Industry Ministry pointed out.

“As per the Order, entities of countries which do not allow Indian companies to participate in their government procurement for any item, shall not be allowed to participate in government procurement in India for all items related to that nodal ministry or department, except for the list of items published by the ministry or department permitting their participation,” the release added. It further pointed out that specifying foreign certifications, putting in place unreasonable technical specifications, brands and models in the bid document is restrictive and discriminatory practice against local suppliers.

Foreign certification, if required, shall be stipulated only with the approval of the secretary of the department concerned, it said.

All administrative ministries/departments whose procurement exceeds ₹1,000 crore per annum shall notify their projections for the next five years on their respective websites. An upper threshold value of procurement beyond which foreign companies shall enter into a joint venture with an Indian company to participate in government tenders shall be notified, as per the statement.

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Published on September 18, 2020
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