In a big boost to 'Make-in-India', the Union Cabinet on Wednesday approved a policy to provide purchase preference to domestic manufacturers in procurements done by state-owned oil and gas companies.
Under the policy, the targets of Local Content (LC) will be stipulated for certain oil and gas business activities.
"The manufacturers/ service providers who meet the local content targets and whose quoted price is within 10 per cent of the lowest valid price bid would be eligible for purchase preference for a stipulated portion of the purchase order on matching such price," an official statement said here.
The policy, approved by the Cabinet headed by Prime Minister Narendra Modi, will be applicable for five years.
A steering committee will be constituted to oversee implementation of the policy and carry out annual review and recommend continuation of the policy from year to year basis.
The new policy is expected to encourage suppliers and service providers to progressively adopt 'Make in India' practices and add value to their goods and services within the country.
"The policy will apply to all the public sector enterprises and their wholly owned subsidiaries, joint ventures that have 51 per cent or more equity by one or more public sector enterprises, attached and subordinate offices of Ministry of Petroleum and Natural Gas," the statement said.
Modi had in September 2014 launched the 'Make in India' initiative to make the country a global design and manufacturing hub.
In tune with this campaign, the government has decided to incentivise the growth in local content in goods and services while implementing oil and gas projects in India through a policy for providing purchase preference to the manufacturers/ service providers who meet the local content targets in oil and gas business activities.