Lok Sabha Question No. 1157 (UNSTARRED), answered on 2019-02-11
Subject: Guidelines on Public Procurement
Ministry: COMMERCE AND INDUSTRY
Asked by: M. CHANDRAKASI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1157. TO BE ANSWERED ON MONDAY, THE 11 TH   FEBRUARY, 2019.

## GUIDELINES ON PUBLIC PROCUREMENT

## 1157.  SHRI M. CHANDRAKASI:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether necessary guidelines/ notifications requiring declaration of items with sufficient  local  capacity  and  domestic  content  in  public  procurement  have been  issued  by  all  Departments  and  CPSUs  in  accordance  with  'Make  in India' programme and if so, the details thereof;
- (b) the mechanism put in place for strict monitoring of implementation of public procurement by the Government agencies in the country; and
- (c) the details regarding salient features of the proposed new industry policy, if any, to promote competitiveness of domestic industry?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY

## वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) (SHRI C.R. CHAUDHARY)

- (a): 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/Departments have been designated as nodal for notifying minimum local content for the relevant product categories.  Following Nodal Ministries/Departments have issued

notifications for Minimum Local Contents:

1. Ministry  of Housing and Urban Affairs
2. Ministry of Petroleum & Natural Gas
3. Ministry of Electronics & Information technology
4. Department of Heavy Industry
5. Department of Pharmaceuticals
6. Ministry of Steel
7. Ministry of Railways
8. Department  for  Promotion  of  Industry  and    Internal Trade
9. Department of Fertilizers
10. Department of Defence Production
11. Department of Telecommunications
12. Ministry of Shipping
13. Ministry of Mines
14. Department of Chemicals & Petrochemicals
15. Ministry of New & Renewal Energy
16. Ministry of Textiles

The  notifications  issued  by  various  Nodal  Ministries  /  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.

- (b): 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 (earlier known as Department of Industrial  Policy  &  Promotion) to  take  up  grievances  for  alleged violation of the Order with procuring entities.
4.  Grievance redressal / sector specific meetings are held to resolve the grievances.
5.  Standing Committee has been constituted under PPP - MII Order to oversee the implementation.
- (c): 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.

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