Lok Sabha Question No. 1455 (UNSTARRED), answered on 2021-02-10
Subject: Vocal for Local
Ministry: COMMERCE AND INDUSTRY
Asked by: Manoj Kishorbhai Kotak

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

UNSTARRED QUESTION NO. 1455. TO BE ANSWERED ON WEDNESDAY, THE 10 TH   FEBRUARY, 2021.

## VOCAL FOR LOCAL

## 1455. SHRI MANOJ KOTAK:

## Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether the Ministry is promoting the Prime Minister's call of 'Vocal for Local';
- (b) if  so,  the  action  taken  by  various  departments  to  implement  the  same  by increasing use of India-made goods; and
- (c) the  details  of  the  action  taken  by  the  various  Departments  to  manufacture various items indigenously in the country?

## ANSWER

## वाणिज् यवव उद्योग म त्रालयमेंराज् यम त्रर(श्रर सोमप्रकाश) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

(a): Yes Sir.

- (b) & (c): 1. Government of India has issued the Public Procurement (Preference to Make in India) Order,2017 as amended on 16/09/2020 to encourage  'Make in India' and promote manufacturing and production of  goods  and  services  in  India  with  a  view  to  enhancing  income  and employment. This Order is applicable to all Ministries , Departments , attached or subordinate offices and autonomous bodies controlled by the  Government  of  India  and  includes  Government  companies  as defined in the Companies  Act.
2.  Department  of  expenditure  has  amended  Rule  161(iv)  of  General Financial Rules, 2017 regarding Global Tender Enquiry (GTE). As per the amended Rule 161(iv), GTE upto Rs.200 crores are to be issued only with the approval of competent authority.

Unless global tenders are invited, only Class-I local suppliers (suppliers offering  items  with  more  than  50%  local  content)  and  Class-II  local suppliers  (suppliers  offering  items  with  20-  50%  local  content)  are eligible to bid.

3.  Only  Class-I  local  suppliers  have  been  made  eligible  to  bid  for procurement of items, where there is sufficient local capacity and local competition, irrespective of purchase value.

4.  Pursuant  to  the  Notification  of  Public  Procurement  (Preference  to Make  in  India)  Order,2017,  Department  of  Telecommunications  has also  notified  its  PMI  Order  dated  29.08.2018   to  promote  the   local manufacture of the telecom items by mandating preference to the local manufactures in the procurement of telecom items. This notification is Sector Schemes(CSS) , for which procurement is made by States and Local Bodies  ,  if  that  project  or  scheme  is  fully  or  partially  funded  by  the Government  of  Including  Universal  Service  Obligation  Fund(USOF)

also applicable to all Central Schemes (CS)/Central projects. 5. In order to enhance India's manufacturing capabilities and exportsAtmanirbhar Bharat, the Government has approved the introduction of Production Linked Incentive (PLI) Scheme in ten sectors i.e. Advance Chemistry Cell(ACC) Battery, Electronic /Technology Products, Automobiles & Auto Components, Pharmaceuticals drugs, Telecom & Networking  Products,  Textile  Products:  MMF  segment  and  technical textiles,  Food  Products,  High  Efficiency  Solar  PV  Modules,  White Goods(ACs and LED)  and Specialty Steel.

6.  Ministry  of  Railways  has  recently  issued  revised  notifications  for wagon items, track items and LHB coaches  where , except for a few products , procurement of all components is restricted to local suppliers having more than 50% local content .For procurement of Electrics  for the prestigious  Vande Bharat trains, minimum local content is kept at 75%.  Similarly,  minimum  local  content  requirements  for  Electrics  for EMU and MEMU trains has been kept as 60%. Railways have reduced import  of  goods,  as  percentage  of  total  procurement  of  goods,  from 6.05%  in  2012-1.6%  in  2019-20.  Rolling  stock,  signaling  equipment and  Track  machines  are  being  indigenized  in  collaboration  of  local manufacturers.

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