By TIOL News Service

NEW DELHI, FEB 11, 2021: SINCE the launch of the 'Make in India' initiative to promote domestic manufacturing of goods and services, the government has continued to increase focus on Indian firms for public procurements.

Minister of State for Commerce and Industry Mr Som Parkash told the Lok Sabha on Wednesday that the Public Procurement (Preference to Make in India) Order, 2017, "encouraged 'Make in India' and promoted manufacturing and production of goods and services in India with a view to enhancing income and employment."

Prime Minister Mr Narendra Modi's administration has pushed all ministries, departments, attached or subordinate offices and autonomous bodies controlled by the Central government and government companies, to buy local.

To enforce it, the Department of Expenditure amended the General Financial Rules, 2017, wherein Global Tender Enquiry (GTE) up to Rs.200 crore is to issued only with the approval of competent authority.

"Unless global tenders are invited, only Class-I local suppliers (suppliers offering items with more than 50 per cent local content) and Class-II local suppliers (suppliers offering items with 20- 50 per cent local content) are eligible to bid," said Mr Parkash.

Only Class-I local suppliers are eligible to bid for procurement of items, where there is sufficient local capacity and local competition, irrespective of purchase value, he added.

The Department of Telecommunications (DoT) has also mandated preference to the local manufacturers in the procurement of telecom items. This is also applicable to all Central schemes for which procurement is done by States for projects that receive funding from the government.

In order to enhance India's manufacturing capabilities and exports, the government also introduced the Production Linked Incentive (PLI) scheme in 13 sectors - such as electronic and technology products, pharmaceuticals, textiles, telecom and networking products - to lower India's dependence on imports. The scheme is also aimed at foreign companies who want to set up manufacturing bases in India.

The Ministry of Railways has also restricted procurement of all components for wagon items, track items and LHB coaches, to local suppliers who fall in Class I, noted Mr Parkash.

For procurement of electrics for the Vande Bharat trains, minimum local content is kept at 75 per cent. Similarly, minimum local content requirements for electrics for EMU and MEMU trains has been kept as 60 per cent.

Railways have reduced import of goods, as percentage of total procurement of goods, from 6.05 per cent in 2012 to 1.6 per cent in 2019-20, he added.