Changes in procurement norms: Imported items sourced locally excluded from local content calculation
Imported items sourced from local suppliers and royalties, technical charges paid out of India as well as supply of repackaged or refurbished goods will be excluded from the calculation of local content, an official said. These changes are included in the modified public procurement norms with an objective of giving maximum preference to companies that use higher levels of local content in their products.
The government prefers made in India goods in their purchases, which run into lakhs of crores of rupees every year.
Major preference in government purchases is given to companies whose goods and services have 50 per cent or more local content, a move aimed at promoting 'Make in India' and making the country self-reliant.
The Public Procurement (Preference to Make in India), Order 2017, has introduced a concept of Class-I, II and non-local suppliers, based on which they will get preference in government purchases of goods and services.
Making modifications to the definition of 'local content', the Department for Promotion of Industry and Internal Trade (DPIIT) has revised the 2017 order, the official said.
«Imported items sourced locally from resellers/distributors, license fees/royalties paid/ technical charges paid out of India, procurement/supply of repackaged/refurbished/rebranded, shall be excluded from the calculation of local content,» the order said.
It also said that the procuring entities will have to obtain from bidders, the cost of such locally-sourced imported items (inclusive of taxes) along with
