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Contracting rules were tightened to curb imports


NEW DELHI: The government on Friday he further tightened public procurement rules to allow ministries to require more than 50% local content, while insisting that foreign companies set up an Indian company to perform a contract rather than supply goods through imports .
In addition, it has inserted a reciprocity clause in the Government Procurement (Preference to Do in India) Order to block foreign entities from countries that do not allow Indian firms to participate in their government contracts, the Ministry of Commerce and Industry said on Friday.
All departments with acquisitions greater than ₹ 1,000cr must notify
However, an exception will be made for a specific list of items that will be notified by government departments. Railways will be among the first ministries to report more than 50% local content for Vande Bharat train production with a threshold likely to be set at 70-80%, a government source told TOI.
The order also said that this reciprocity stipulation, aimed at countries like China, which have restricted access to Indian tech companies for government contracts, will be part of all bids invited by central government contracting entities. All government e-market purchases will also have this provision for items identified by ministries.
In addition, all ministries, whose annual purchases exceed Rs 1 billion, will now have to report their purchase projections for the next five years on their respective websites. The trade and industry ministry statement added that specifying unreasonable foreign certifications, technical specifications, brands or models in a bidding document is a restrictive and discriminatory practice against local suppliers.

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