ANNOUNCED AS TEMPORARYNo
Public procurement preference margin
The same government announcement included the following provision. For government procurement of INR 5 million (~USD 77,172) and more or where sufficient local capacity and competition doesn't exist, if the lowest bid is from a non-local supplier and if there is a bid from a local supplier that is within a margin of 20% from the lowest the bid, then the local supplier will be given an opportunity to match the lowest bid. Further, in case the local supplier matches the lowest bid, it will get to supply a) 100% of the procurement if the procurement is non-divisible or b) 50% of the procurement if the procurement is divisible, where the contract of the rest 50% will be given to the non-local supplier.
On 4 June 2020, a Revised Procurement Order was notified that defined Class-I local suppliers (minimum local content of 50%) and Class-II local suppliers (local content of 20% to 50%). Further, according to the revised order
*INR to USD as on 24 May 2017 - INR 64.79/USD
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