Report : Make in India not followed in spirit, says cabinet secretary Rajiv Gauba

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NEW DELHI: Cabinet secretary Rajiv Gauba has written to secretaries of various ministries, expressing dissatisfaction over the quantum of local sourcing and procurement done by the government despite Prime Minister Narendra Modi’s insistence on ‘Atmanirbhar Bharat’ and ‘Make in India’ programs.

Gauba said it was observed that ‘Make in India’ is not being followed in letter and spirit as he directed secretaries of key ministries to look into the issue forthwith.



“It has been observed from the tenders issued by various procuring entities on CPP/ GeM (Central Public Procurement/Government e-Marketplace) portals that PPP-MII (Public Procurement – Preference to Make in India) Order is not being implemented in letter and spirit by some of the organizations,” Gauba said in his communication, top sources told TOI.

The country’s top bureaucrat said “there are instances” where the provisions of the PPP-MII Order, 2017, have not even been incorporated in tenders. “Excessive turnover, the requirement of specific brands/ makes, the requirement of foreign certification, the requirement of unreasonable prior experience, and requirement of prior experience of supplying to specific nations/entities, have sometimes been prescribed as qualifying criteria,” Gauba said, highlighting some of the ways by which local suppliers were being denied an opportunity.

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He said that secretaries should “advise all the procuring entities” under their ministry/department to “ensure full compliance” of the PPP-MII Order “in letter and spirit”. “You are also requested to review the implementation of the order and take all necessary measures/correction actions so that there is no deviation.” The PPPMII Order was issued by the department of promotion of industry and internal trade (DPIIT) to encourage ‘Make in India’ and promote manufacturing and production of goods, services, and works within the country to enhance income and employment.

However, the industry and especially small- and mid-level companies have often complained that they are generally kept out of large businesses, where foreign vendors are preferred.

For example, in the telecom ministry’s tenders for large projects for mobile communications and installing networks in the northeast, left-wing extremist (LWE) areas, and Andaman & Nicobar, there have been instances of local companies being denied an opportunity.

“Often the operators who win the tenders work only with their foreign vendors to procure telecom infrastructure. They are believed to have business arrangements with these partners and thus do not entertain local suppliers, even though they have low-cost requisite technologies suitable for our terrain,” a vendor said, requesting anonymity.
Telecom Equipment and Services Export Promotion Council (TEPC) chairman Sandeep Aggarwal said the criteria of ‘past experiences’ is often used to keep domestic suppliers out.

The matter has previously been flagged by commerce minister Piyush Goyal too who wrote to some of the ministries, complaining that domestic industry was often ignored.

 

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