Government notifies higher minimum local content requirement for Class-I and Class-II local suppliers

The government has amended the Public Procurement (Preference to Make in India) Order, 2017, enabling  nodal ministries and departments to notify a higher minimum local content requirement for Class-I and Class-II local suppliers.

Earlier, the local content requirement for Class-I and Class-II suppliers was fixed at 50 percent and 20 percent respectively.

As per the order, entities of countries which do not allow Indian companies to participate in their government procurement for any item, would not be allowed to participate in government procurement in India for all items related to that nodal ministry or department, except for the list of items published by the ministry or department permitting their participation.

"Specifying foreign certifications/unreasonable technical specifications/ brands/ models in the bid document is restrictive and discriminatory practice against local suppliers. Foreign certification, if required, shall be stipulated only with the approval of the Secretary of the Department concerned," the government said in a statement.

All administrative ministries or departments whose procurement exceeds Rs 1,000 crore per annum would have to notify their procurement projections for the next 5 years on their respective website, according to the statement.

"An upper threshold value of procurement beyond which foreign companies shall enter into a joint venture with an Indian company to participate in government tenders shall be notified," the statement added.