Ministry of Railways has directed General Managers of all Railway Zones to ensure that all procurement agencies in the network comply with the Public Procurement (Preference to Make in India) Order. file | Photo credit: The Hindu
The central government has imposed more than a dozen “restrictive and discriminatory” conditions barring local suppliers from participating in the bidding process. Alteration in terms of tender was a violation of rules Public Procurement (Preference to Make in India) Order, 2017Issued to protect the interest of local suppliers.
Last week, the railways ministry directed general managers of all zonal railways and production units to ensure that all procurement agencies across the railway network follow the PPP-MII order and stop any “restrictive and discriminatory” conditions against local suppliers. Avoid including
This communication follows the latest guidelines issued by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry on December 20, 2022, highlighting some common examples of “restrictive and discriminatory” terms against local suppliers and certain other qualifications. has been inserted. Norms which were not in conformity with the PPP-MII order.
DPIIT, in consultation with Department of Expenditure and Government e-Marketplace (GeM), had identified over a dozen terms commonly introduced in tender terms that went against local suppliers but suited the interests of foreign manufacturers and issued an advisory.
foreign standard
For example, the advisory states that foreign technical standards such as minus 25 degree temperature adaptability for certain equipment procured for airports were included to eliminate ‘Make in India’ products, depending on the end use of the equipment. without justification for the need for that specification value. Service.
Other revised tender criteria included standard certification by foreign agencies in procurement of medical and electronic equipment without specifying any equivalent Indian certification or substitute.
Requirement of high turnover as pre-qualification criteria, not commensurate with the financial capability required to execute the contract, emphasis on specific experience of supplying products to other countries such as exports to G8 countries, additional requirement of bank guarantee and Delayed payment terms included. Other conditions that prevent local manufacturers from participating in the procurement process.
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Global Brand
Another criterion that was observed in procurement of IT, electronic and electrical products was specifying foreign brands either for finished products or as part of the scope of work. The report clarified that while Cisco, NEC, Alcatel, Siemens products were specified in telecom products, HP, Dell, Lenovo were emphasized in IT products. In the procurement of lifts, the tender conditions specified the use of OTIS, Mitsubishi, Schindler, Kone and Johnson products.
The advisory states that the conditions of the bid stipulated that the particular goods/works/services category was exempted from the provisions of the PPP-MII order as the nodal ministry concerned had not issued any notification for the same, this is a There was another condition which made the bid invalid. In accordance with the procurement rules. It also clarified that the PPP-MII order applies to procurement of all categories of goods/works/services of value above Rs 5 lakh.
The PPP-MII order of 2017 was issued to promote domestic value addition in public procurement. The policy provides purchase preference to domestic manufacturers and service providers who comply with local material requirements in public procurement activities, and not to entities importing goods only to trade or assemble them.