By ICN GroupChemical, June 02, 2020

Govt. announces mandatory public procurement of chem & petchem

The Department prescribes minimum 60%, 70% and 80% local content for FY2020-21, FY2021-23 and FY2023-25 respectively of local chemicals and petrochemical contents in public procurement.

The Department of Chemicals and Petrochemicals (DCPC) has opted for mandatory public procurement of chemicals and petrochemicals to boost manufacturing, Mansukh Mandaviya, Minister of State (I/C) for Chemicals and Fertilizers, Govt of India, says.  

The Department prescribes minimum 60%, 70% and 80% local content for FY2020-21, FY2021-23 and FY2023-25 respectively of local chemicals and petrochemical contents in public procurement.

Lauding the decision, Mandaviya  says : "Mandatory Public Procurement of Chemicals and Petrochemicals to boost manufacturing and production of goods, services and works will promote Make in India."

The Department of Promotion of Industry and Internal Trade (DPIIT) has recently revised the Public Procurement (Preference to Make in India) Order, 2017 on 29th May 2019 to encourage Make in India and to promote manufacturing and production of goods, services and works in India with a view to enhance income and employment.  

While identifying chemicals and petrochemicals, prescribing minimum local content and the manner of calculation, the Department has assessed the domestic manufacturing available capacity and the extent of local competition. Around 55 various types of chemicals, petrochemicals, pesticides and dyestuff have been identified.

Out of the 55 chemicals and petrochemicals identified by the department, local suppliers shall be eligible to bid for the estimated value of procurement of more than Rs. 5 lakh and less than Rs. 50 lakh for 27 products and in respect of remaining 28 chemicals & petrochemicals, the procuring entities shall make procurement only from local supplier irrespective of bid amount as there is sufficient local capacity and local competition.   

This step will strengthen #Atmanirbhar Bharat Abhiyan launched by the Prime Minister Narendra Modi and will also boost domestic production under “Make in India”.

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