Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles
The government is looking to liberalize public procurement rules for the production of new and innovative products, in line with its focus on the Make in India programme.
“In public procurement, some sectoral modifications may be necessary. There are certain sectors where the ecosystem needs time to develop. Initially the added value is lower, but little by little it increases. We are examining whether we can have a roadmap for these sectors so that they can move towards becoming Class I or Class II suppliers,” Commerce and Industry Minister Piyush Goyal said on Sunday.
The list of products to be included in the new and innovative products will be determined after the inter-ministerial meeting.
“(Based on industry recommendation) another thing that is being considered is the procurement rules for those manufacturers producing a product for the first time in India. Normally, prior experience is required when hiring. We are looking at ways to make them eligible for supply through laboratory testing or other ways,” Goyal said.
These suggestions emerged during the minister’s interaction with CEOs of over 140 production-linked incentive (PLI) beneficiary companies, including Samsung, Reliance Industries, JSW Steel, Dixon, Sun Pharmaceuticals and Daikin, among others.
Currently, companies that produce goods, services or works with at least 50 percent local content are called Class I local suppliers. They are given maximum preference in public procurement.
The goods, services or works of a local Class II supplier have between 20 and 50 percent local content. A non-local supplier is one that has less than 20 percent local content. This class is generally the least preferred in public procurement under the Public Procurement Order, unless there are no local Class I or Class II suppliers available for a specific requirement.
As far as the progress of the PLI plan is concerned, investments in the 14 sectors are expected to reach approximately Rs 2 trillion by next year from Rs 1.46 trillion currently.
This has resulted in production/sales worth Rs 12.5 trillion and employment generation of around 9.5 lakh (direct and indirect), which is expected to reach 12 lakh soon.
Exports have crossed Rs 4 trillion, with substantial contributions from key sectors such as electronics, pharmaceuticals and food processing.
The government is also expediting all necessary approvals related to PLI industries and providing support for greater market access, the minister said in the interaction with CEOs of PLI beneficiaries.
Goyal further urged the CEOs to focus on increasing the domestic value addition of their products to make India self-reliant.
“During the three-hour interaction, the CEOs of the beneficiary companies shared their perspectives on the PLI schemes, offering valuable insights on their experiences, success stories and suggestions to improve the effectiveness of the schemes and expedite their implementation,” said a official statement.
First published: September 29, 2024 | 19:05 IS
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