Ministry of Commerce & Industry

Posted On: 11 FEB 2019 1:01PM by PIB Delhi

The Public Procurement (Preference to Make in India), Order 2017 (as amended on 28.05.2018) (PPP-MII Order) was issued pursuant to Rule 153(iii) of the General Financial Rules 2017 as an enabling provision to promote domestic value addition in public procurement. The policy aims at incentivizing production linked through local content requirements, thereby encouraging domestic manufacturers’ participation in public procurement activities over entities merely importing to trade or assemble items. This Order is applicable on procurement of goods, services and works (including turnkey works) by a Central Ministry, Department, their attached, subordinate offices, autonomous bodies controlled by the Government of India, Government companies, their Joint Ventures and Special Purpose Vehicles. As per PPP-MII Order, purchase preference is given to local suppliers who meet the minimum local content requirement. Further, various Ministries and Departments have been designated as nodal for notifying minimum local content for the relevant product categories.

Ministry of Housing and Urban Affairs, Ministry of Petroleum & Natural Gas, Ministry of Electronics & Information technology, Department of Heavy Industry, Department of Pharmaceuticals, Ministry of Steel, Ministry of Railways, Department for Promotion of Industry and Internal Trade, Department of Fertilizers, Department of Defence Production, Department of Telecommunications, Ministry of Shipping, Ministry of Mines, Department of Chemicals & Petrochemicals, Ministry of New & Renewal Energy and Ministry of Textiles have issued notifications for Minimum Local Contents.

The notifications issued by Nodal Ministries and Departments are available on the departmental website dipp.gov.in.  Ministry of Civil Aviation, Department of Defence and Ministry of Power are yet to issue the notification for Minimum Local Contents for their respective product segments.

Following mechanism has been put in place for strict monitoring of implementation of PPP-MII Order by Central Government agencies:

1. All procuring entities have to certify compliance with the provisions of the Order while publishing any tender on Central Public Procurement Portal.

2. Stakeholders can lodge online complaint on Central Public Procurement Portal for alleged violation of the Order.

3. A Cell has been created in DPIIT to take up grievances for alleged violation of the Order with procuring entities.

4. Grievance redressal and sector specific meetings are held to resolve the grievances.

5. Standing Committee has been constituted under PPP - MII Order to oversee the implementation.

The proposed new Industrial Policy is to be a roadmap for all business enterprises in the country. In this regard, consultations have been held with stakeholders to get their ideas and feedback.

This information was given by the Minister of State of Commerce and Industry, C. R. Chaudhary, in written reply in the Lok Sabha today.

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MM/SB

Local content preference in public procurement prioritizes domestic manufacturers over importers in government tenders under procurement rules. The guidelines require and incentivise compliance with minimum local content thresholds so that public procuring entities give purchase preference to local suppliers meeting those thresholds, with nodal ministries empowered to notify product-specific local content requirements.