Lok Sabha Question No. 1006 (UNSTARRED), answered on 2021-02-08
Subject: Procurement of Steel
Ministry: STEEL
Asked by: Rajesh Verma

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.1006 FOR ANSWER ON 08/02/2021

## PROCUREMENT OF STEEL

1006.  SHRI RAJESH VERMA:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government  has  formulated any scheme  to promote the procurement of Made in India steel;
- (b) if so, the details thereof;
- (c) whether the Government plans to disinvest in steel sector and if so, the details thereof; and
- (d) if not, the reasons therefor?

THE MINISTER OF STEEL

- (a) Yes, Sir.
- (b) Government has formulated the Policy for providing Preference to Domestically Manufactured Iron and Steel Products (DMI&SP) Policy in Government procurement to promote the Made in India steel on 8 th May, 2017 and subsequently  revised  on  29 th May,  2019  and  31 st December,  2020.    Salient features of the policy are attached as Annexure .

(c)&(d): Yes, Sir.  Government has approved the disinvestment of Nagarnar Steel Plant of NMDC Ltd., three units of Steel Authority of India Limited, Rashtriya Ispat Nigam Limited and Ferro Scrap Nigam Limited.

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## ANSWER

(SHRI DHARMENDRA PRADHAN)

## Policy  for  providing  preference  to  Domestically  Manufactured  Iron  &  Steel Products (DMI&SP) Policy

The Government had introduced DMI&SP Policy on 8th May, 2017 to provide preference  to  domestically  produced  iron  &  steel  material  in  Government  tenders. Further, the Policy was revised on 29 th May, 2019 and on 31 st December, 2020. The salient features of the Policy are as under:-

-  This policy provides preference to Domestically Manufactured Iron and Steel Products (DMI&SP) in Government procurement.
-  The policy  covers  a  list  of  49  manufactured  products  of  iron  and  steel.  The minimum domestic value addition  of 20-50 percent  is  specified  on  these  49 products of iron & steel. The policy also covers capitals goods for manufacturing  iron  &  steel  products  for  which  minimum  domestic  value addition of 50 percent is specified.
-  Each Ministry  or  Department  of  Government  and  all  agencies/entities  under their  administrative  control  is  under  the  purview  of  the  DMI&SP  Policy  as notified  by  the  Ministry  of  Steel.  All  Central  Sector  Schemes  (CS)/Centrally Sponsored  Schemes  (CSS)  for  which  procurement  is  made  by  States  and Local  Bodies,  would  come  within  the  purview  of  this  Policy,  if  that  project  / scheme is fully / partly funded by Government of India.
-  The policy shall be applicable to projects where the procurement value of iron and  steel  products  is  greater  than  Rs.  5  lakhs.  The  policy  shall  also  be applicable  for  other  procurements  (non-project),  where  annual  procurement value of iron and steel products for that Government organization is greater than  Rs.  5  lakhs.  However,  it  shall  be  ensured  by  procuring  entities  that procurement  is  not  split  for  the  purpose  of  avoiding  the  provisions  of  this policy.
-  The  policy  is  applicable  to  purchase  of  iron  &  steel  products  by  private agencies for fulfilling an EPC contract and/or any other requirement of Ministry or  Department  of  Government  or  their  PSUs  and  also  to  capital  goods  for manufacturing  iron  &  steel  products  in  compliance  to  prescribed  quality standards, as applicable.
-  No  Global  Tender  Enquiry  (GTE)  shall  be  invited  for  tenders  related  to procurement of iron and steel products. No Global Tender Enquiry (GTE) shall be invited for tenders related to procurement of Capital Goods for manufacturing  iron  &  steel  products  having  estimated  value  upto  Rs.  200 Crore  except  with  the  approval  of  competent  authority  as  designated  by Department of Expenditure.
-  The policy has provisions for waivers to all such procurement, where specific grades of steel are not manufactured in the country, or the quantities as per the demand of the project cannot be met through domestic sources.

The policy is envisaged to promote growth and development of domestic steel Industry in Government funded projects.

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