Piyush Goyal pitches for local vendors, increased focus on 'Make in India' in railways' procurement process

Days after the Centre amended the General Financial Rules, 2017, imposing restrictions on public procurement from bidders of countries that share a land border with India, Railway Minister Piyush Goyal strongly pitched for Indian Railways to purchase 'Made in India' products.

With railways purchasing around Rs 70,000 crore worth goods and services annually, Goyal stressed the need to increase the participation of local vendors in procurement.

The Minister, who held meeting with top railway officials to promote 'Make in India' products on the national transporter, also asked officers to interact with the industry to ensure increased participation of Indian manufacturers.

In the meeting, it was also decided to introduce a clause for promoting local content in its procurement process so that it gets more bids from local vendors/suppliers. Active support of DPIIT (Department for Promotion of Industry and Internal Trade ) to make suitable policy revisions, if required, said a statement from railways.

In the meeting, which was attended by Minister of State for Railways Suresh Angadi and top railways offficials, the Railway Board Member (materials management), made a presentation to enhance Make in India and steps being taken to procure through Government e-Marketplace (GeM) along with the progress made.

Goyal emphasised on the need for railways' goods and services procurement of approximately Rs 70,000 crore on GeM platform to open up the market to industry even at remote places, and specially MSMEs.

It was decided that the railways would work more towards having a user-friendly single-step vendor web-based interface for all its procurements.

The railways ministry decision came days after the Ministry of Finance amended General Finance Rules which will bar all government agencies to procure goods and services from bordering countries such as China and Pakistan, citing defence and national security.

Earlier, the Indian Railways scrapped tender for procure thermal cameras after Indian firms alleged that the tender specifications favoured a Chinese company.

The national transporter also cancelled Western Dedicated Freight Corridor signalling contract given to a Chinese firm due to slow progress of work.