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Panel to monitor implementation of public purchase policy (Eds: Adding more info after para 11)

Press Trust of India  |  New Delhi 

The has constituted a five-member committee to oversee implementation of a new policy under which preference will be given to local goods and services in public procurement.

The policy, which aims to generate employment and promote Make in initiative, was approved by the Union Cabinet last month.


The standing committee will be chaired by the secretary in the Department of Industrial Policy and Promotion. The other members will be from ministries of commerce, electronics and IT, the Department of Expenditure and the DIPP.

In an order to all the central ministries, departments, central public units, the commerce and industry ministry said the committee will "oversee the implementation" of the Public Procurement (preference to Make in India) Order, 2017.

It would also make recommendations to nodal ministries and procuring entities, besides annually assessing and periodically monitoring compliance.

The committee "may assess issues, if any, where it is felt that the manner of implementation of the order results in any restrictive practices, cartelisation or increase in public expenditure and suggest remedial measures".

It will meet "as often as necessary but not less than once in six months".

As per this order, purchase preference will be given to local suppliers in all procurements.

Local suppliers are those whose goods or services meet prescribed minimum thresholds -- usually 50 per cent -- for local content, which is essentially domestic value addition.

"... Where the estimated value of procurement is Rs 50 lakh or less, only local suppliers shall be eligible," it said.

However, for procurements valued above Rs 50 lakh, a detailed method has been prescribed under which local supplier will be given an opportunity to match the lowest bid.

DIPP Secretary Ramesh Abhishek said: "This will be a game changer for 'Make in India' programme and it will give a boost to the domestic manufacturing sector."

He told reporters that if domestic firms feel that they are facing discriminations or restrictive conditions have been imposed in the tender, they can complain to this committee.

"Earlier, we used to get a lot of complaints about discrimination and lack of level-playing field in the procurement," he said.

Excluding defence purchases, the procurement aggregated to about Rs 2 lakh crore annually.

As per the order, procuring entities shall endeavour to see that eligibility conditions, including on matters like turnover, production capability and financial strength do not result in unreasonable exclusion of local suppliers who would otherwise be eligible.

It also said that ministries or departments may, "by written order, reduce the minimum local content; reduce the margin of purchase preference below 20 per cent".

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 15 2017. 20:57 IST
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