ANNOUNCEMENT 19 May 2016

On 19 May 2016, the Central Electricity Authority under the Government of India published guidelines for domestic competitive bidding of power projects funded by the central or state utilities or other public sector agencies. These guidelines prescribe procurement of equipment and material from domestic manufacturers through local competitive bidding only.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

"Domestic Competitive Bidding for Domestically funded projects of MOP, CPSUs, PFC or REC and transparent two-part bidding" (No. CEA/PSETD/205/218-296) - Published 19 May 2016 by the Central Electricy Authority
http://www.cea.nic.in/reports/others/ps/psetd/domestic_competitive_bidding_2016.pdf

Times of India - Local sourcing mandatory for govt-funded power projects - 25 May 2016
http://timesofindia.indiatimes.com/business/india-business/Local-sourcing-mandatory-for-govt-funded-power-projects/articleshow/52425944.cms

Inception date: 19 May 2016 | Removal date: open ended
Still in force

Public procurement localisation

The new guidelines for power projects funded by the Ministry of Power or the Central Public Sector Undertakings (CPSUs) or those funded by the Power Finance Corporation (PFC) or Rural Electrification Corporation (REC) or other state power utilities demand that equipment and materials should be procured from domestic manufacturers through local competitive bidding. If international competitive bidding has to be pursued, the quoted price should be in Indian Rupees.


In case domestic manufacturing facility or capability does not exist for certain materials or equipment, foreign manufacturers and suppliers are allowed to participate in the bidding process provided they form a joint venture/consortium with an Indian bidder.