MII - Make In India Policy - Public Procurement Order 2017 - Materials Management

 

 

Make In India Policy

By Shri Nagendra, AMM/SWR

 

Title: Public Procurement ( Preference to Make In India) Order 2017 & Revised one in 2018

 

Source: MakeIn India Order 2017 (Revised in 2018)

 

Issued by Ministry of Commerce and Industry- Department of Industrial Policy and Promotion ( DPIIT) pursuant to Rule 153(iii) of GFR.

 

This is an executive Order and not passed in the Parliament and hence not a policy supported by legislature.

 

Applicability: To procurement of Goods, services ( including system Integrator contracts), Works ( Including turnkey contracts), PPP and EPC.

 

Applicable to Central schemes/ Central schemes for a State/ Local body- If Project or scheme is partially or fully funded by Government of India.

 

Exempted :

   Contracts less than Rs. 5 lakhs

   Spares procured from OEM or OES ( Original Equipment Suppllier) or OPM (Original Part Manufacturer)

   Contracts entered/ committed before 15.05.2020.

   Covid-19 items ( till 31.03.2023)

   Raw Materials- Nickel,chromite sand, Low carbon ferrochrome, metallic manganese fluoride.

 

Rules:

   GTE – Global Tender Enquiry is mandatory if offers of vendors with local content less than 20% are proposed for Acceptance.

   Tenders valuing <Rs. 200Cr- Normally no GTE- If to be issued then Domestic OT should be floated before sending proposal to GT.

   Proposal to be forwarded to DPIIT with

   Finance concurrence and approval of GM.

   3-5 year procurement plan is to be mentioned

   Publication details of vendors meet before start of next procurement cycle

   GTE proposal is to be submitted on GTE portal- e-Samiksha.

   Once approved it will be valid for 01 year. RT does not require fresh approval if initial tender is issued within 3 months of approval.

 

Proposal will be lapsed if

 

   Submitted before 01.04.2022

   Closing date of domestic tender is more than one year

   Proposals lying unattended for > 6months.

 

 

 

 

 

 

Classification of suppliers:

 

   Class-I : Whose Service/Works/Goods has local content of Min. 50%  Class — Il: Whose Service/ Works/Goods has local content of Min. 20% but < 50%.

   Non Local supplier: Whose Service/ Works/Goods has local content of less than 20%.

Purchase preference:

 

   In procurement of Goods/ Services where Nodal ministry/ Dept. has declared that sufficient local capacity is available: only Class-I local suppliers are eligible to participate irrespective of the value of the tender.

   In other tenders ( except Global tenders) only Class-I and Class-Il local suppliers are eligible to quote.

   In tenders which are not reserved for Class-I local suppliers(i) Goods/works can be divided

   LI- Class I local supplier- Full qty order.

   L-1- Not a Class I local supplier Ll- 50% qty order

   balance to be offered to next Class-I local supplier within the price range of 20% with matching of price.

   If he doen't agrees, then to be offered to next Lowest Class-I bidder within 20% range.

   If none of the Class-I suppliers within 20% of LI agrees, then Balance qty also to be ordered on L-1.

   In tenders which are not reserved for Class-I local suppliers (ii) Goods/ works can not be divided  Ll- Class I local supplier- Full qty order.

   L-1- Not a Class I local supplier-

   Class-I local supplier within the price range of 20% will be called to match the of price L-1. If he agrees, then full qty order to him.

   If he does'nt agrees then to be offered to next Lowest Class-I bidder within 20% range.

   If none of the Class-I suppliers within 20% of Ll agrees, then Balance qty also to be ordered on L-1.

 

Local content:

 

[Total value of the item procured exclusive of net domestic taxes — Value of of imported content in it ( inclusive of customs duty)l X 100 Total value.

In tenders less than Rs. 10 Cr.- Participating firms have to give selfcertification with details of location where local addition made.

 

In tenders more than Rs. 10 Cr- Certificate from Auditor, Cost auditor, CA.

Services such as transportation, insurance, installation, commissioning, training and after sales service support like AMC/ CMC ete. are NOT considered as local value addition.

Penalty for False declaration:

 

•      Debarment for 2 years

•      Debarred by one Ministry shall not be eligible for price preference by other ministries also.

•      DOE will issue consolidated list of debarred entities.

 

Powers to reduce Min. Local content- By the Ministry initiating procurement with the approval of Minister concerned.

 

Conditions in Tenders:

 

•      Should not include Experience of supply in foreign countries

•      Experience criteria and eligibility criteria should not be over restrictive • Should not include Foreign specification. If due to some reason foreign specification is included then equivalent Indian specification also to be included.

•      Foreign certification can be stipulated- only when Indian standards are not available- with the approval of Secretary of department concerned.

 

Reciprocity Clause:

 

If any country is not allowing Indian firms to participate in tenders of their country, then Nodal ministry can restrict firms from that country in it's tenders.

 

Orders regarding some Items:

 

Wagon Items ( except Twist lock, Grease for CTRB & Steel)- has sufficient Local capacity ( Ir. Dt. 12.07.20)

IGBT based 3 phase control equipments for MEMU and EMU- Increased Local content to 75% ( Ir. Dt. 15.10.20)

S&T items such as Point Machines, relays etc.- Sufficient Local capacity( Ir. Dt. 22.06.20)

 

Nine items of LHB coaches are exempted from Mll policy ( Automatic Sliding Doors/ Automatic Entrance Plug Door, Sealed Gangway/ Dust sealed Inter Car Gangway, CCTV Cameras, CTRB, Axle Mounted Disc Brake System, NonAsbestos based Organic Brake Pads, Air spring assemblies, DM bearing, Forged Axles and Wheels) le. Dt. 24.09.20

 

RE items - have local capacity- Except short Neutral section assembly- dt.

19.02.21

 

136 items of 3 Phase AC loco- Sufficient Local capacity- dt 09.02.21

 

Local content in desktop PC

 

Sum of the cost of main inputs like mother board/ CPU /GPU — Total value of the CPU= Shall not exceed 30% of total Bill of Material of PC.

Hard disc, Memory, Monitor, DVD drive- Domestic Assembly- testing by imported or domestic parts.

PCB assembly of CPU on bare PCB using SMT process should be done in India.

 

 

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