Supporters of India’s ruling party hold placards as they protest against the Chinese government in New Delhi on Friday.NEW DELHI: The Centre will soon ask states to amend their procurement contracts to include provisions ensuring that local suppliers get preference and Chinese companies or goods do not gain access. The government, which has reserved government contracts up to ₹200 crore for locally manufactured goods, is keen that states also adopt such a policy.
“A video conference will be held with states shortly to discuss the operational details of imposing a local preference clause,” a government official told ET.
The idea is to ensure that their contracts are in sync with national policy.
States could be asked to expeditiously adopt the 2017 Department for Industrial Policy and Internal Trade’s Public Procurement (Preference to Make in India) Order and follow the latest central government measures on procurement contracts.
No policy can be effective unless it percolates down to the state level, the official said.
Domestic Manufacturing Push
The exercise that was initiated as part of the larger government plan to encourage local manufacturing has gained urgency after the hostilities at the border with China. Only two or three states have aligned their contracts with the central policy so far on giving preference to local products.
Governments have to issue global tenders for projects in which multilateral funding is involved. But such a clause can be introduced in the multiple contracts that state governments and their public sector units hand out.
Quality clauses could also be included to bar goods from China in supply contracts and to discourage local suppliers from supplying imported goods, another official said, adding Indian service providers could be discouraged from taking on Chinese partners. The focus is on encouraging states to undertake policies to encourage local businesses.
Source: indiatimes.com
