Officials restricting supply of domestic goods for public procurement to face action

To promote made in India goods in public procurement, the government will take action against officials who would be held responsible for including restrictive or discriminatory norms against domestic suppliers in bid documents, an official said.

Amending the Public Procurement (Preference of Make in India) Order 2017, the commerce and industry ministry has stated that inquiry would be conducted by the administrative department undertaking the procurement to fix responsibility in case restrictive or discriminatory conditions against domestic suppliers are included in bid documents.

After the inquiry, "appropriate action, administrative or otherwise, shall be taken against erring officials of procurement entities under relevant provisions," according to the amended rules.

 

Earlier, tenders worth about Rs 13,000 crore were either cancelled or withdrawn and re-issued after the ministry stepped in to change their conditions for promoting 'made in India' goods.

Under the Public Procurement (Preference to Make in India) Order, it was envisaged that all central government departments, their attached or subordinate offices and autonomous bodies controlled by the Government of India should ensure purchase preference be given to domestic suppliers in government procurement.

It also provides 20 per cent margin of purchase preference, while the minimum local content required shall ordinarily be 50 per cent.

This is part of an initiative of the ministry to encourage 'make-in-India' campaign and promote manufacturing and production of goods and services India.

The ministry had asked all departments including steel, railways, defence, oil and gas, pharmaceutical, electronics, telecommunications, heavy industries, textiles, shipping and power to identify number of items to notify domestic content requirement in that product.

Several departments including defence, and telecom have already identified a number of items in this regard.

In September, the telecom department had also issued rules that it will act against officers found responsible for inserting clauses in tender with malafide intent that restrict purchase of indigenous products in government purchases.

Further the amended order also stated that a department of government entity can reduce the minimum local content norm and margin or purchase preference with the approval of the minister incharge.