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.
--End--
