NEW DELHI: The government on Friday further tightened public procurement norms to allow ministries to mandate over 50% local content, while also insisting that overseas companies set up an Indian venture to execute a contract instead of supplying goods through imports.
Besides, it has inserted a reciprocity clause in the Public Procurement (Preference to Make in India) Order to block foreign entities of countries that do not allow Indian firms to participate in their government contracts, the commerce and industry ministry said on Friday.
All depts with over ₹1,000cr procurement have to notify
An exception will, however, be made for a specified list of items that will be notified by government departments. The railways will be among the first ministries to notify more than 50% local content for production of Vande Bharat train sets with the threshold likely to be fixed at 70-80%, a government source told TOI.
The order also said that this stipulation on reciprocity — targeted at countries such as China, which have restricted access to Indian technology companies for government contracts — will be part of all tenders invited by the central government procuring entities. All procurement on government e-marketplace will also have this provision for items identified by the ministries.
Further, all ministries — whose annual procurement tops Rs 1,000 crore — will now have to notify their purchase projections for the next five years on their respective websites. The commerce and industry ministry’s statement added that specifying foreign certifications, unreasonable technical specifications, brands or models in a bid document is restrictive and discriminatory practice against local suppliers.