ANNOUNCED AS TEMPORARYNo
Public procurement localisation
The Reserve Bank of India in its tender document for Security Features for Indian Banknotes has specified that successful bidders either are required to manufacture the security features in India through a subsidiary, a license or through the transfer of technology or indicate the willingness to do so. Elaborated in the "Make in India" clause within the document, the RBI requires that if the successful bidder is not manufacturing in India, it is required to set up a manufacturing facility in India within 2 years of signing of the contract and further the local content has to increased from at least 30% in year 3 and at least 40% in year 4 to at least 50% in year 5. Bids not accepting the Make in India condition will be rejected, while contracts of those that do not meet the conditions post signing will incur penalties including contract termination.
The document also discriminates against foreign bidders as opposed to local Indian bidders. Indian suppliers are exempt from the criteria of past performance, experience and average annual turnover for selection. Further, they are not required to provide proof of supply of Security Features to other countries, which is required for foreign bidders.
The items included in the list for the supply of Security Features are Security Thread, Color Shifting Ink, Foil Patch, Security Fibre, Paper/Ink Based Taggant, Advanced Watermark and Micro Perforation.
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