Mandatory use of local products: Government

Department of Promotion of Industry and Internal Trade (DPIIT) has recently revised the Public Procurement (Preference to Make in India) Order, 2017 on 29.05.2019 to encourage Make in India and to promote manufacturing and production of goods, services and works in India with a view to enhance income and employment.

While identifying Chemicals and Petrochemicals, prescribing minimum local content and the manner of calculation, the Department of Chemicals & Petrochemicals has assessed the domestic manufacturing available capacity and the extent of local competition.

As many as 55 various types of Chemicals, Petrochemicals, Pesticides and Dyestuff have been identified. The minimum local content for these Chemicals & Petrochemicals has been prescribed by the Department beginning with local content percentage at 60% for the year 2020-2021 and thereafter, raising it to 70% for the years 2021-2023 and 80% for the years 2023-2025.

Out of the 55 Chemicals & Petrochemicals identified by the Department, local suppliers shall be eligible to bid for the estimated value of procurement of more than Rs. 5 lakhs and less than 50 lakhs for 27 products and in respect of remaining 28 Chemicals & Petrochemicals, the procuring entities shall make procurement only from local supplier irrespective of bid amount as there is sufficient local capacity and local competition.