Latest news with #PreferencetoMakeinIndia
Time of India
a day ago
- Business
- Time of India
As Centre mulls easing norms for local telecom gear makers, GX Group flags import surge risk
New Delhi: Relaxation in value-addition norms for domestically-manufactured telecom equipment without proper guardrails may enhance risk of imports from non-trusted sources, a top official of GX Group has said. The Department of Telecom (DoT) has started a review of local value-addition norms in telecom equipment following reports that manufacturers are facing a challenge in achieving 50-60% local content in electronic and telecom products due to limited component ecosystem in the country. The move comes at a time when the government has rolled out a Rs 23,000-crore electronics component manufacturing scheme to enhance local value addition in domestically manufactured electronic products. "The consideration of a review to local content norms is a welcome move, however, relaxations need to come with caution on specific components. "Reducing value addition without utmost caution can enhance risk of increase in imports from non-trusted nations," GX Group CEO Paritosh Prajapati told PTI. GX Group is a beneficiary under the telecom sector's production linked incentive (PLI) scheme. The company has its manufacturing facility in Manesar and a research and development centre in Chennai. "The security-sensitive telecom equipment segment is already being infested from imported products, which is mitigating growth of indigenous production under telecom PLI scheme ," Prajapati said. The DoT on June 3 invited comments on the review of the Public Procurement (Preference to Make in India ) from industry bodies -VoICE, TEMA, ICEA, COAI and MAIT, original equipment makers --Tejas, VVDN, HFCL, Nokia, Ericsson and CISCO. It has also invited comments from electronics manufacturing services companies Dixon, Syrma, Neolync and Jabil as well as public sector firms like BSNL and TCIL. The DoT has given 30 days for stakeholders to submit their comments. Prajapati said that GX Group and other industry stakeholders have been completely focused on indigenisation mandates and have built a robust local manufacturing ecosystem along with local R&D and IP rights in the past few years. He said that given the Indian component space is still growing somewhat, relaxations of the norms may bring in some relief to the industry for specific components only to ensure that Indian players become more competitive. "Foreign companies coming in to cater to the diverse Indian market should also invest in R&D within the country and make efforts to maximise local production of required components and sub-components," Prajapati said. He said that there are instances wherein global players expand into the market but rely on assembling of products rather than creating products and adding value, in a way not investing in the local economy but only ready to cater to the market demand and enhance revenues. "Relaxation in value addition norms should be accompanied with conditions like technology transfer, timeline for capacity development in India, phase-wise manufacturing programme, etc," Prajapati said.
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Business Standard
12-05-2025
- Business
- Business Standard
DPIIT proposes hiring agency to vet govt tenders for norms compliance
A penalty up to 10 per cent of the contract value can be imposed in case the contractor/ supplier does not meet the stipulated local content requirement Press Trust of India New Delhi The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed to appoint a consulting agency to scrutinise tenders of central government procuring entities for compliance with public procurement norms. The department has floated a request-for-proposal (RFP) in this regard. The Government of India has issued Public Procurement (Preference to Make in India) Order, 2017. It has been issued to promote locally manufactured items in public procurement thereby increasing domestic production of goods and services. The policy aims at incentivizing procurement linked through local content requirements, thereby encouraging domestic manufacturer's participation in public procurement activities over entities merely importing to trade or assemble items. A penalty up to 10 per cent of the contract value can be imposed in case the contractor/ supplier does not meet the stipulated local content requirement. As per the order restrictive and discriminatory clauses against domestic suppliers cannot be included in procurement by Central Government agencies. "DPIIT intends to onboard an agency, for a period of one scrutinising tenders of Central Government procuring agencies for its compliance with ...(this) order," it said. Earlier, the department had identified 259 tenders as non-compliant with the public procurement norms in 2024. The decision to appoint an agency comes in the backdrop of DPIIT's observation that procuring entities are not stipulating the applicability of the Order in tenders, which is the most significant factor contributing to non-compliance. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
12-05-2025
- Business
- Time of India
Govt to scrutinize 1,000 procurement tenders, assess impact on procurement fall from land border sharing nations
New Delhi: The government will scrutinize 1,000 high value tenders of 25 procuring entities of the Centre including CPSUs to assess the impact of its Public Procurement (Preference to Make in India ) Order 2017, the Department for Promotion of Industry and Internal Trade ( DPIIT ) said. #Operation Sindoor The damage done at Pak bases as India strikes to avenge Pahalgam Why Pakistan pleaded to end hostilities Kashmir's Pahalgam sparks Karachi's nightmare The assessment will cover decrease in procurement from countries sharing land border with India and the quantum of procurement exclusively from Class-I Local suppliers . In public procurement tenders, departments and ministries are allowed to mandate higher than minimum 50% and 20% local content for two separate categories of local suppliers categorised as Class I and Class II. 'DPIIT intends to on-board a consulting agency…The agency shall scrutinize complete tender documents including tender eligibility requirement, technical specifications and other terms and conditions,' it said. Before expiry of each year of the contract period, the agency shall carry out a detailed impact assessment study to assess the impact of PPP-MII Order on public procurement ecosystem, it said. This would include details such as the quantum of procurement exclusively from Class-I Local suppliers by granting them purchase preference and increase in procurement from Class - I and Class - II local suppliers. In July 2020, the government amended the General Financial Rules 2017 to restrict bidders from countries which share a land border with India from bidding in any government procurement contracts on grounds of national security . Such bidders have to register with a Registration Committee constituted by the DPIIT and require political and security clearance from the ministries of external and home affairs, respectively. Live Events In 2024, India tightened the public procurement norms by excluding imported inputs while calculating the local content in its purchase orders. Imported items sourced locally from resellers, distributors, royalties, technical charges paid out of India, and supply of repackaged or refurbished goods are excluded from the calculation of local content. The government also modified the definition of 'local content' through the revision. License fees, royalties, or technical charges paid outside India are excluded while calculating local content. Economic Times WhatsApp channel )
