Public Procurement (Preference to ‘Make in India’ Order) 2017

Public Procurement (Preference to ‘Make in India’ Order) 2017

Subject – Science and Tech

Context – The Department for Promotion of Industry and Internal Trade has “observed” that government procuring agencies, including Public Sector Undertakings, had not implemented the Public Procurement (Preference to ‘Make in India’ Order), 2017, in “letter and spirit”.

Concept –

• The Order is applicable for procurement by the Ministry / Department / attached / subordinate office of, or autonomous body controlled by, the Government of India and includes Government companies as defined in the Companies Act.
• In procurement of all goods, services or works in respect of which the Nodal Ministry/ Department has communicated that there is sufficient local capacity and local competition, only ‘Class-I local supplier’, as defined under the Order, shall be eligible to bid irrespective of purchase value.
• The margin of purchase preference shall be 20%. ‘margin of purchase preference’ means the maximum extent to which the price quoted by a local supplier may be above the L1 for the purpose of purchase preference.
• Government amended the Public Procurement (Preference to Make in India) Order, 2017 – The amendment enables nodal Ministries/ Departments to notify higher minimum local content requirements for Class-I & Class-II local suppliers which was earlier fixed at 50% and 20% respectively.