MoP releases notification to give buying preference to local suppliers

The Ministry of Power has issued a notification to give local suppliers in the power industry buying preference in an effort to strengthen the ‘Make in India’ programme. When procuring goods, services, or works with sufficient local competition, only ‘Class-I local suppliers’ will be permitted to bid, regardless of the purchase value. Except when a global tender is launched, only Class-I and Class-II local suppliers would be able to bid. Non-local suppliers, as well as Class-I and Class-II local suppliers, will be allowed to participate in the bidding process for global tenders.

With the approval of the agency authorised by the Department of Expenditure, a global tender will be published for goods worth more than Rs 2 billion. Class-I local suppliers will be given preference over Class-II local suppliers and ‘non-local suppliers’ when purchasing goods. If a Class-I local supplier quotes the L1 bid, the L1 bidder will be awarded the contract for the complete quantity. If the L1 bidder is not a Class-I local supplier, the L1 bidder will be given 50 per cent of the quantity. For the remaining 50 per cent of the quantity, the lowest bidder among the Class-I local suppliers will be invited to match the L1 pricing.