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Last Updated : Jul 11, 2019 07:43 PM IST | Source: Moneycontrol.com

To push local supply, government pushes for easing of public procurement norms

Central agencies undertake massive public procurement every year. However, the benefits of this procurement at times do not accrue to the domestic industry even where it is technically and financially competitive due to the restrictive and discriminatory conditions being imposed against domestic players.

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The government has instructed various central agencies and departments to ensure that tenders don't include conditions that make it difficult for local suppliers in public procurement processes.

"The idea is to make local procurement norms easier to push local manufacturing. We want to drop conditions such as minimum Rs 1,000-crore turnover and export experience to G8 countries," a government official said.

Department for Promotion of Industry and Internal Trade (DPIIT) has told these agencies to relax tender conditions such as excessive turnover and experience requirement, additional requirement of bank guarantee, export experience and foreign technical standards, the official said.

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The order covers conditions such as the mandatory presence in Gartner Magic Quadrant for IT and telecom products, mandatory USFDA or EU CE compliance in medical devices, Rs 1,000-crore turnover norm for procurement of Rs 70 crore, 10 years’ experience and export to G8 countries, and technical parameters favouring foreign products, among others.

Central agencies undertake massive public procurement every year. However, the benefits of this procurement at times do not accrue to the domestic industry even where it is technically and financially competitive due to the restrictive and discriminatory conditions being imposed against domestic players.
First Published on Jul 11, 2019 07:43 pm
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