ANNOUNCEMENT 29 Aug 2018
The policy for giving preference to domestically manufactured telecommunication products has been specified.
NUMBER OF INTERVENTIONS
Notification No. 18-10/2017-IP - Ministry of Communications
On 29 August 2018, the Ministry of Communications has through Notification No. 18-10/2017-IP stated the policy for giving preference to locally manufactured telephone products, works, and services in central 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 the Preference to Make in India (PMI) i.e. the minimum percentage procurement required of locally manufactured goods and the Local Content (LC) i.e. the percentage of local value addition that qualifies the product as locally manufactured. The PMI and LC percentage rates have been specified for 35 products and for telecom service/works. The PMI rates for products range from 50-100% while the LC rates range from 35-65% for 2018-19. The LC rates increase by 5% for almost every product from 2019-20 onwards. The PMI and LC rates for telecom services and works have been fixed at 100% and 70% respectively.
The Notification is effective immediately.