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Preference for local supplier in procurement

Last Updated 24 May 2017, 20:05 IST

The Union Cabinet on Wednesday approved a policy for providing preference to local supplier in government procurements. The new policy will give a substantial boost to domestic manufacturing and service provision, thereby creating employment.

It will also stimulate the flow of capital and technology into domestic manufacturing and services.
It will also provide a further thrust towards manufacture of parts, components, sub-components etc. of these items, in line with the vision of 'Make in India', Finance Minister Arun Jaitley said.

Under the policy, preference in government procurement will be given to local suppliers. Local suppliers are those whose goods or services meet prescribed minimum thresholds (ordinarily 50%) for local content. Local content is essentially domestic value addition.

In procurement of goods for Rs 50 lakh and less, and where the nodal ministry determines that there is sufficient local capacity and local competition, only local suppliers will be eligible.

For procurements valued at more than Rs 50 lakh (or where there is insufficient local capacity/ competition) if the lowest bid is not from a non-local supplier, the lowest-cost local supplier who is within a margin of 20% of the lowest bid, will be given the opportunity to match the lowest bid.

If the procurement is of a type that the order can be divided and given to more than one supplier, the non-local supplier who is the lowest bidder will get half of the order and the local supplier will get the other half if it agrees to match the price of the lowest bid.

Janpath Hotel to be closed

The Cabinet on Wednesday approved the closure of Janpath Hotel, one of the iconic property owned by the ITDC in the national capital. The property will be used for setting up government offices.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi gave 'in-principle' approval for the transfer of property of Hotel Janpath to the Ministry of Urban Development.

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(Published 24 May 2017, 20:05 IST)

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