For sourcing of Covid-19 related supplies, the government has temporarily relaxed last year’s orders giving preference to companies whose goods and services have 50 per cent or more local content that was intended to promote `Make in India'.
The relaxation will be applicable till September 30 2021, per an order issued by the Department for Promotion of Industry and Internal Trade (DPIIT).
“….the administrative Department undertaking the procurement (including procurement by any entity under its: administrative control) may exempt the procurement of supplies required for containment of COVID-19 global pandemic from the applicability of this order/ any provision thereof, after written approval of Secretary of the Department concerned or any other Authority having been assigned power by the Secretary of the Department concerned. The aforesaid exemption. shall be applicable only till September 30 2021,” the latest DPIIT order issued on May 13 stated.
Public procurement order amendments
On June 4 last year, the government had modified public procurement order (2017) to give the most preference to companies whose goods and services had 50 per cent (classified as Class 1 local supplier) or more local content followed by those whose domestic value addition was between 20 per cent and 49 per cent (Class 2 local supplier). The measure was targeted at promoting 'Make in India' and making the country self-reliant.
The order was further amended on September 16 2020 allowing Departments and Ministries to mandate higher than minimum 50 per cent and 20 per cent local content stipulated earlier for two separate categories of local suppliers. It also restricted those entities of countries from participating in government procurement that disallowed Indian companies from participating in bidding for their government contracts.
“While the DPIIT order notified on May 13 temporarily waives the preference give to Class 1 local suppliers and Class 2 local suppliers in public procurement, it is not clear whether the restrictions on countries disallowing Indian companies from participating in their government procurement bidding have also been relaxed,” a Commerce & Industry Ministry official told BusinessLine.