Clarification on imports for less than 5 lacs

[BRIJMOHAN GOYAL]

Sir,

We need clarification on imports for PSUs & Govt organisation for less than 5 lacs. As per Public Procurement (Preference of Make in India), Order no. 2017 -Revision; dated 04th June 2020.

As per clause no.4 on page no.4 : 'Exemption of small purchases: Notwithstanding anything contained in paragraph 3, procurements where the estimated value to be procured in less than ₹ 5 lakhs shall be exempt from this order.'

As per our clause , it has doubt that :-

(a) Applicable for price preference for Class- A vendor , for tenders less than 5 lac is not applicable.

OR

(b) Any procurement upto ₹ 5 lakh is exempted from imports, i.e For imports less than 5 lacs by CPSUs/Govt. Orgn, no permission is required from Ministry of Expenditure.

We request for clarification on above issue.

Regards,

BM Goyal

[PAWAN KUMAR]

request to share the details of the subject order.

AI Summary

Exemption for small procurements raises ambiguity on price preference and import permission requirements for government procurements. Whether the exemption of small purchases in the Make in India procurement order excludes application of price preference for Class A vendors in procurements below five lakh, or alternatively relieves such procurements from import permission requirements by the Ministry of Expenditure, is queried by PSUs and government organisations; the only recorded administrative response requested further details of the order and gave no definitive interpretation.