Vocal For Local: Centre To Ask States To Amend Procurement Contracts To Bar Chinese Suppliers And Push Indian Ones

The Central government led by Prime Minister (PM) Narendra Modi will ask the States to amend their procurement contracts to include provisions ensuring that local suppliers get the preference and Chinese goods and suppliers do not gain access, reports Economic Times.

The Centre itself has reserved contracts of up to Rs 200 crore for domestically manufactured goods. To ensure a similar push by State Governments, the Centre is likely to soon hold a video conference with them in near time to chalk out the details of such an amendment to procurement contracts.

As per the report, “States could be asked to expeditiously adopt the 2017 Department for Industrial Policy and Internal Trade’s Public Procurement (Preference to Make in India) Order and follow the latest central government measures on procurement contracts.”

The effort which had first been implemented by Centre in a bid to push local manufacturing in the view of the COVID-19 pandemic induced economic chaos, has gained momentum and strength in the wake of Indo-China border dispute which has witnessed the martyrdom of 20 Indian soldiers including an officer.

The Government is also said to be looking to introduce quality standards related clauses in procurement contracts to create barriers for the entry of Chinese manufactured goods into India.