Lok Sabha Question No. 2778 (UNSTARRED), answered on 2022-08-03
Subject: PPP-MII
Ministry: COMMERCE AND INDUSTRY
Asked by: Shashi Tharoor

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

## LOK SABHA

UNSTARRED QUESTION NO. 2778. TO BE ANSWERED ON WEDNESDAY, THE 3 RD  AUGUST, 2022.

## PPP-MII

## 2778.  DR. SHASHI THAROOR:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  the  Government  has  issued  an  order  on  Public  Procurement (Preference to Make in India) in October 2017;
- (b) if so, details thereof;
- (c) the details of the total procurement of goods and services complying with the PPP-MII order and the total procurement of goods and services conducted by all the Ministries since October, 2017, ministry and year-wise;
- (d) whether the Ministry has issued an amendment to the PPP-MII order which allows foreign companies with minimum domestic value addition of only 20% to participate in public procurement;
- (e) if so, the details thereof along with the reasons for the amendment; and
- (f) the number of complaints filed and disposed of since the launch of the online complaints redressal platform for non-compliance with PPP-MII requirements, Ministry-wise?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b): Yes Sir, the Government of India issued Public Procurement (Preference to Make in India), Order 2017 (PPP-MII Order) on 15.06.2017. The Order has been amended subsequently four times since. A copy of the last amended Order dated 16.09.2020 is attached.
- (c): All procurement by Central Ministries / Departments, their Attached/Subordinate offices, Autonomous bodies controlled by Government  of  India  and  Public  sector  companies  are  mandatorily

required to follow the provisions of the Order in their procurement, except in case of the following exceptions to the Order:

- i. Procurement of goods, services or works with tender value less than Rs. 5 lakhs.
- ii. In  cases  where  a  Ministry  /  Department  has  its  own  policy  for purchase preference, approved by the Cabinet after 01.01.2015 but before  the  issuance  of  PPP-MII  Order,  2017;  their  policies  will prevail over the provisions of this Order.

However, details of total procurement of goods and services by all the Ministries since October, 2017, Ministry and year-wise is not maintained centrally.

- (d) & (e): 1.       The PPP-MII Order was amended on 04.06.2020 to introduce the following changes in the Order:
- a.  Suppliers  or  bidders  are  categorized  into  following  categories depending upon the local content in the quoted item:
- i. Class I local suppliers - Suppliers which offer item with more than 50% local content.
- ii. Class II local suppliers - Suppliers which offer item with more than 20% but less than 50% local content.
- iii. Non-local  supplier  -  Suppliers  which  offer  items  with  less than 20% local content.

The  Order  was  further  amended  on  16.09.2020  to  authorize  the Nodal  Ministry,  for  the  particular  item,  to  increase  (not  decrease) minimum  local  content  requirement  for  Class-I  and  Class-II  local suppliers.

- b.  Only 'Class-I local supplier' and 'Class-II local supplier' are eligible to  bid  in  government  procurements.  Non-local  suppliers  can participate only when a Global Tender Enquiry has been issued (i.e. for tender worth Rupees 200 crore and above or allowed as an  exception,  after  taking  prior  approval  from  the  authorized competent  authority).  Bidders  offering  imported  items,  even  as dealers/resellers,  are  not  allowed  to  participate  unless  Global Tender Enquiry is issued.

2.      The aforesaid amendments in the Order were introduced to further boost domestic manufacturing and encourage procurement of only locally produced items and to debar participation of imported items in central government  procurement  unless  global  tender  enquiry  is  issued  or permitted as an exception.

- (f): DPIIT  launched  an  the  Online  Portal (https://pmiig.dpiit.gov.in)  on 05.05.2021 for redressal of grievances lodged  for alleged violations of PPP-MII Order, 2017 by the procuring entities. So far, total number of 110 grievances has been received on this portal against the tenders floated

by various procuring entities of Central and State Governments. DPIIT has addressed all the grievances and forwarded them to the concerned Ministries  /  Departments  and  Procuring  Entities  for  taking  necessary corrective action. Ministry-wise breakup of the grievances is provided as under:

|   Sr. No. | Name of Ministry Department    |   No. of Complaints Received |   No. of complaints addressed / disposed Off |
|-----------|--------------------------------|------------------------------|----------------------------------------------|
|         1 | Department of Higher Education |                           12 |                                           12 |
|         2 | Defence                        |                            8 |                                            8 |
|         3 | Power                          |                            7 |                                            7 |
|         4 | Home                           |                            6 |                                            6 |
|         5 | DFS                            |                            6 |                                            6 |
|         6 | Mines                          |                            5 |                                            5 |
|         7 | MoHUA                          |                            5 |                                            5 |
|         8 | Railway                        |                            4 |                                            4 |
|         9 | DoT                            |                            3 |                                            3 |
|        10 | MeitY                          |                            3 |                                            3 |
|        11 | MoRTH                          |                            3 |                                            3 |
|        12 | Atomic Energy                  |                            2 |                                            2 |
|        13 | Civil Aviation                 |                            3 |                                            3 |
|        14 | MoH&FW                         |                            2 |                                            2 |
|        15 | Coal                           |                            2 |                                            2 |
|        16 | Consumer Affairs               |                            2 |                                            2 |
|        17 | Agriculture                    |                            2 |                                            2 |
|        18 | Science & Tech                 |                            2 |                                            2 |
|        19 | Information and Broadcasting   |                            1 |                                            1 |
|        20 | Heavy Industries               |                            1 |                                            1 |
|        21 | Earth sciences                 |                            1 |                                            1 |
|        22 | Fertiliser                     |                            1 |                                            1 |
|        23 | Textile                        |                            1 |                                            1 |
|        24 | Tribal Affairs                 |                            1 |                                            1 |
|        25 | DST                            |                            1 |                                            1 |
|        26 | MoPNG                          |                            1 |                                            1 |
|        27 | Space                          |                            1 |                                            1 |
|        28 | State Governments and others   |                           24 |                                           24 |

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