SME Times News Bureau | 01 Aug, 2020
As part of its initiative to bring down import content in the sensitive
power sector, particularly from countries such as China, the power
ministry has issued a new public procurement order that bars
participation of non-local suppliers in the case of 110 goods and
services required by the thermal power sector.
These goods which
include power equipment such as transformers, switch gears, cables and
insulators, will henceforth be supplied only by Class-1 category
companies where local content is 50 per cent or more and sufficient
capacities are existing in the country.
The procurement by
government entities or projects funded by the Power Finance Corporation
and REC Ltd of such goods and serviced will only be through this
category of suppliers while all others will be barred to participate in
bids.
The power ministry has also listed another 69 items in
its public procurement order. This group included goods and services
that are being manufactured under license from foreign manufacturers
holding intellectual property rights . These can be sourced from
class-II suppliers that have localisation level between 20 per cent and
50 per cent.
Overseas suppliers with no manufacturing base in
the country will only be allowed to participate in global tenders
floated by state and central government companies or state funded
projects for orders above Rs 200 crore. Along with non-local suppliers,
such tenders will also be opened for Case-1 and Case-2 suppliers.
Moreover,
government entities floating global tender for less than Rs 200 crore
will have to take the prior approval of the competent authority before
progressing.
The restrictions have been placed by the power
ministry extending the scope of the public procurement order earlier
issued by the Department for Promotion of Industry and Internal Trade
(DPIIT) aimed at encouraging "Make in India" and promoting manufacturing
and production of goods and services in India with a view to enhancing
income and employment.
