ANNOUNCED AS TEMPORARYNo
Public procurement localisation
On 1 August 2018, the Ministry of Electronics and Information Technology has through Notification F.No.33(5)/2017-IPHW stated the policy for giving preference to locally manufactured mobile phones in government purchases.
India had in May 2017 approved the Public Procurement (Preference to Make in India) Order which required that preferential procurement should be done from local suppliers for all government procurements. The Order had specified a minimum local content of 50% for goods to qualify as a locally produced but had provided scope for ministries to define local content requirements for specific goods as well.
The current Notification specifies that 50% of the value of cellular mobile phones procured has to be domestically manufactured and that there should be at least 50% value addition to the Bill of Material (BOM) for the good to qualify as domestically manufactured. The Notification lists the parts that count towards the BOM and also lists the value addition criteria for each. The value addition criteria for mobile phones mainly requires that the parts be domestically assembled without any restriction on the usage of indigenous or imported raw materials.
The Notification is valid immediately and will be reviewed after 31 March 2019.
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