Did Central procuring agencies tweak tender conditions to circumvent the ‘Make in India’ policy, an ambitious initiative by Prime Minister Narendra Modi?
The Department for Promotion of Industry and Internal Trade (DPIIT) has “observed” that government procuring agencies, including Public Sector Undertakings, had not implemented the Public Procurement (Preference to ‘Make in India’ Order), 2017, in “letter and spirit”.
It was found that “excessive turnover, requirements of specific brands/make, requirement of foreign certification, requirement of unreasonable prior experience and requirement of prior experience of supplying to specific nations/entities” were sometimes prescribed as qualifying criteria.
The Ministry of Railways, which makes huge purchases for its manufacturing, maintenance and service sectors every year, has flagged the issue with the General Managers of all Zonal Railways, Production Units and other major establishments across the country.
In an advisory issued last week, Chandan Kumar, Director, Railway Board, said there were instances where the provisions of the Public Procurement (Preference to ‘Make in India’ Order), 2017, were not incorporated in the tender. The policy was to encourage ‘Make in India’ and promote manufacturing and production of Goods, Services and Works in India with a view to enhance income and employment.
“In view of the above, it is advised to all the procuring entities to ensure full compliance of the Public Procurement (Preference to ‘Make in India’ Order), 2017, as amended, in letter and spirit. Procuring units, including Public Sector Undertakings, should review the implementation of the order and take all necessary measures/corrective actions so that there is no deviation…”
The ‘Make in India’ policy, first notified in 2017 and amended three years later, gave preference to local suppliers in procurement of all goods, services or works in respect of which the Nodal Ministry/Department has communicated that there is sufficient local capacity and local competition, only local suppliers shall be eligible to bid irrespective of the purchase value.
A Standing Committee chaired by the Secretary, DPIIT, and Secretary (Commerce), Secretary (Ministry of Electronics & Information Technology) and other senior officials was constituted to oversee the implementation of the Public Procurement (Preference to ‘Make in India’ Order), 2017.
In May 2021, certain exemptions from the order were given for procurement of supplies required for containment of COVID-19 pandemic after getting written approval from the competent authority.
