Public procurement order: DPIIT wants 'local content' calculation narrowed

The industry department has written to the Cabinet secretariat, asking it to do away with certain components of services in calculating local content under public procurement rules.

The components include transportation, insurance, installation, profit, commissioning, training, and after-sales support.

Including such services in the calculating local content is believed to lead to overestimating value added through domestic manufacturing. This allows companies to meet local-content requirements without necessarily indigenising production, which undermines the goal of promoting local manufacturing and production.
 

In the 16th meeting of the standing committee to review the implementation of Public Procurement (Prefe­rence to Make in India) Order held