Domestic medical device makers seek 15% price preference in public tenders

The domestic medical devices industry representatives have written to the Department of Industrial Policy and Promotion (DIPP) as well as the Union Ministry of Health and Family Welfare, seeking a 10-15 per cent price preference for local device makers, while participating in public tenders. This, the industry feels, would boost the Make In India initiative.  In a 2017 order, the DIPP had done away with the provision of price preference in the Public Procurement Order (PPO), and introduced a provision of the 20 per cent purchase preference in tenders.  The PPO states that if the lowest (L1) bid is not from a local supplier, 50 per cent of the order quantity shall be awarded to L1.

In that case, the lowest bidder among the local suppliers is invited to match the L1 price for the remaining half of the order. This is subject to the fact that the local supplier's price falls within 20 per cent margin of purchase preference. 

Rajiv Nath, forum coordinator of Association of Indian Medical Device Industry (AIMED) said if Indian projects funded by the World Bank had preferential price cause, the DIPP PPO may also be amended to give the same price preference to Indian self-financed tenders. 

Industry experts observe that in the current method of matching the L1 prices, the domestic makers would not be able to match the Chinese prices. They are also against the misuse of the US Food and Drug Administration (USFDA) certification clause mandatory in certain tenders. "Proof of quality cannot be solely determined by regulatory approval in another country. This clause is misused by the multinational importers to discourage domestic makers from participation," said an industry source. 

In its letter to the government, AIMED has noted that India is 70 per cent import-dependent in medical devices, and 90 per cent in medical electronics.