Prime Minister Narendra Modi during a review meeting has expressed concern on barriers imposed against domestic manufacturers and suppliers in tenders being floated for public procurement.
"The Prime Minister has expressed concern at the restrictive and discriminatory clauses being imposed against domestic manufacturers and suppliers in tender documents for public procurement. These observations were made during the course of review of the implementation of the Public Procurement (Preference to Make in India) (PPP-MII) Order, 2017," an official statement said.
The government had issued the PPP-MII Order, 2017 on June 15, 2017 to promote manufacturing and production of goods and services in India with aim to enhance income and employment in the country.
Under the 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. The order provides 20 per cent margin of purchase preference, while the minimum local content required shall ordinarily be 50 per cent.
During the review meeting, it was observed that of e-tenders issued on the Central Public Procurement Portal (CPPP) for the financial year 2017-18, almost 47 per cent pertain to works in terms of value (Rs.6.65 lakh crores out of total of Rs.14.18 lakh crores).
"Provisions are being incorporated on the CPP Portal, wherein any domestic supplier can raise a grievance against any restrictive or discriminatory condition. A dedicated cell in the Department of Industrial Policy & Promotion will look into such grievances, before issuing necessary directions. Further all procuring entities would be required to certify that they are complying with the PPP-MII Order," the statement said
In the review meeting, specific cases of such restrictive and discriminatory conditions against domestic manufacturers pertaining to Ministry of Railways and Metro Rail Coaches were examined.
"Directions were given to ensure strict compliance of the PPP-MII Order in letter and spirit. Further, all nodal Ministries were directed to ensure notification of local content in the next 10 days, whereafter the cabinet secretary would be reviewing each individual nodal ministry, the statement said.
In the meeting it was categorically clarified that the PPP-MII Order is also applicable to procurement of works, including turnkey works, besides goods and services.
"The government is committed to implement the PPP-MII Order in right earnest, and thus boost incomes and generate further employment in India," the statement said.
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