In a move aimed to further promote Indian manufacturers, the Department for Promotion of Industry and Internal Trade (DPIIT<\/a>) has drawn up a list of 20-odd restrictive and discriminatory conditions put in place by procuring agencies under various ministries against local suppliers<\/a>, which make them non-complaint with the government's public procurement for Make in India<\/a> order.
These conditions include additional requirement of bank guarantee for local suppliers, delayed payment<\/a> terms for them, excessive past experience requirement not commensurate with the proven experience expected from bidder for successful execution of contract, and mandatory foreign certification<\/a> without specifying any equivalent Indian certification as alternative in procurement of medical and electronic devices<\/a>.
\"Many agencies are violating the public procurement norms in their tendering processes through restrictive and discriminatory conditions which go against the local suppliers,\" said an official, adding, that the list is being shared with all ministries and procuring agencies.
In a move aimed to further promote Indian manufacturers, the Department for Promotion of Industry and Internal Trade (DPIIT<\/a>) has drawn up a list of 20-odd restrictive and discriminatory conditions put in place by procuring agencies under various ministries against local suppliers<\/a>, which make them non-complaint with the government's public procurement for Make in India<\/a> order.
These conditions include additional requirement of bank guarantee for local suppliers, delayed payment<\/a> terms for them, excessive past experience requirement not commensurate with the proven experience expected from bidder for successful execution of contract, and mandatory foreign certification<\/a> without specifying any equivalent Indian certification as alternative in procurement of medical and electronic devices<\/a>.
\"Many agencies are violating the public procurement norms in their tendering processes through restrictive and discriminatory conditions which go against the local suppliers,\" said an official, adding, that the list is being shared with all ministries and procuring agencies.
In an effort to become self-reliant and reduce its dependence on imports, especially non-essential ones and promote domestic manufacturing, the government has mandated local content in public procurement.
The DPIIT's move assumes significance as the second phase of the Make in India<\/a> campaign, focusing on 27 sectors, is in the works. The department is also working with 24 sectors, including furniture, EV parts, electronics, textiles and auto components, to boost domestic manufacturing, increase exports and cut down imports.
Conditions such as export<\/a> experience of G8 countries, excessive turnover requirement as a pre-qualifying criteria, foreign brands<\/a> specified for finished products or components for telecom and IT products, pre-approved foreign brands in turnkey projects while excluding local manufacturers, and specifications tailor-made to suit foreign products are also part of the list. Another key violation pertains to changing the minimum local content requirement for Class-I or Class-II local supplier without approval of competent authorities.
In public procurement tenders, departments and ministries were allowed to mandate higher than minimum 50% and 20% local content for two separate categories of local suppliers categorised as Class-I and Class-II.
Officials said that the list is indicative and is likely to be updated.
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