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Govt scraps tenders worth Rs 30,000-crore to push Make in India products

Piyush Goyal asked the industry to look for ways to expand the country's export basket by adding more value-added products and cut shipments of raw materials

BS Web Team & Agencies 

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Government tenders worth about Rs 30,000 crore were cancelled because of discriminatory practices being followed, a top official said on Monday.

Restrictive and discriminative tender practices prevent participation of domestic companies in government procurement, hurting 'Make in India' initiatives.

The Department for Promotion of Industry and Internal Trade (DPIIT) from time to time has intervened to change conditions in those tenders in order to promote 'Made in India' goods.

"Many of the restrictive and discriminative tender practices have been identified. Almost Rs 30,000 crore (worth) of tenders have been cancelled because of discriminatory practices," Secretary Guruprasad Mohapatra said here at a function.

He said the vigilance cases have been ordered by the Central Vigilance Commission wherever the department felt that a tender has been floated deliberately with a mala fide intention to deny a level-playing field to an Indian player.

The department is taking every step for effective implementation of public procurement order, 2017, to promote 'Made in India' products.

The government issued the order on June 15, 2017, to promote manufacturing and production of goods and services in India and enhance income and employment in the country.

Under the Public Procurement (Preference to Make in India) Order, it was envisaged that all central government departments, their attached or subordinate offices and autonomous bodies controlled by the Government of India should ensure that purchase preference be given to domestic suppliers in government procurement.

The secretary said government departments and public sector companies should give preference to local players.

"The government has taken many initiatives like Make in India, ease of doing business, investor facilitation, FDI reforms, new infrastructure creation and various outreach programmes to increase share of manufacturing in GDP and create 100 million jobs by 2024," Mohapatra said.

Commerce and Industry Minister Piyush Goyal, meanwhile, asked the industry to look for ways to expand the country's export basket by adding more value-added products and cut shipments of raw materials. He said the country's export basket was changing but it was not changing at a fast pace.

"We are moving from some raw materials to intermediates. Can we collectively look at changing basket of exports to do more value-added products? Can we reduce exports of, let's say, iron ore and export high-quality steel? Can we stop exporting alumina, and stop importing aluminium products?," he said. He asked and the department of commerce to identify sectors where India has competitive advantage and where the Indian industry can see business opportunities.

Earlier, adding a new dimension to 'Make in India', the Economic Survey 2019-20 had suggested that the government should integrate 'Assemble in India for the world' into its flagship programme to boost exports and generate jobs. In the Union Budget for 2020-21, Finance Minsiter Nirmala Sitharaman significantly increased the allocation for the kitty.

First Published: Mon, February 17 2020. 20:32 IST