Make in India: DPIIT revises guidelines for procurement of chemicals, petrochemicals

In a bid to give a boost to Make in India, Department of Promotion of Industry and Internal Trade (DPIIT) has revised the public procurement order to promote manufacturing and production of goods, services and works in the country with a view to enhance income and employment.

Based on the assessment of domestic manufacturing available capacity and the extent of local competition, the DPIIT has prescribed minimum local content and the manner of calculation for chemicals and petrochemicals in public procurement. As many as 55 various types of chemicals, petrochemicals, pesticides and dyestuff have been identified. The minimum local content for these chemicals and petrochemicals has been prescribed with local content percentage at 60 per cent for the year 2020-2021 and thereafter, raising it to 70 per cent for the years 2021-2023 and 80 per cent for the years 2023-2025.

"Out of the 55 chemicals and 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 and petrochemicals, the procuring entities shall make procurement only from local supplier irrespective of bid amount as there is sufficient local capacity and local competition," Ministry of Chemicals and Fertilisers said in a statement.

This step will strengthen 'Atma Nirbhar Bharat Abhiyan' launched by the Prime Minister and will also boost domestic production under 'Make in India', it added.

Lauding the decision, Mansukh Mandaviya, Minister of State for Shipping and MoS for Chemicals and Fertilisers said, "mandatory public procurement of chemicals and petrochemicals to boost manufacturing and production of goods, services, and works will promote Make in India."

By Chitranjan Kumar

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