Virtual Interactive Session on “Revised Public Procurement (Preference for Make in India) Order 2017” – Imperatives and Opportunities for Defence Industry
Society of Indian Defence Manufacturers (SIDM) is conducting an Interactive Session to discuss the implications of “Revised Public Procurement (Preference for Make in India) Order, 2017” promulgated by the Department of Promotion of Industries and Internal Trade, Ministry of Commerce & Industries on 04 June 2020. The Interaction will be moderated by Rear Admiral Pritam Lal (Retd), Principal Advisor, SIDM.
Hon’ble Prime Minister’s clarion call for AtmaNirbhar Bharat on 12 May 2020. The roadmap for 'AtmaNirbhar Bharat Abhiyan (Self Reliant India Campaign)' is to be built on five pillars viz. Economy, Infrastructure, Systems based on 21st century technology driven arrangements; Vibrant Demography, and Demand – leveraging the domestic marketplace that generates demand on one hand and manufacturing and supply chain on the other.
In pursuance of the PM’s call, Finance Minister announced a series of measures for giving further impetus to the on-going “Make-in-India” initiatives in defence sector. The main theme of the new initiatives under “AtmaNirbhar Bharat Abhiyaan” are:
1. Enhancing Self Reliance in Defence Production
- ‘Make in India’ for Self-Reliance in Defence Production will be promoted by notifying a list of weapons/platforms for ban on import with year wise timelines, Indigenisation of imported spares, and separate budget provisioning for domestic capital procurement.
- Improve autonomy, accountability and efficiency in Ordnance Supplies by Corporatisation of Ordnance Factory Board.
2. Policy Reforms in Defence Production
- FDI limit in the Defence manufacturing under automatic route will be raised from 49 percent to 74 percent.
- There will be time-bound defence procurement process and faster decision making will be ushered in by setting up of a Project Management Unit (PMU) to support contract management; Realistic setting of General Staff Qualitative Requirements (GSQRs) of weapons/platforms and overhauling Trial and Testing procedures.3.
- No Global Tender for sourcing of Goods & Services below Rs 200 Crores.
Originally Public Procurement (Preference to Make in India), Order 2017 was issued on 17 June 2017 to encourage 'Make in India' and promote indigenous manufacturing and production of goods and services through partnerships, cooperation with local companies, establishing production units in India or Joint Ventures (JV) with Indian suppliers. A provision for Purchase Preference with a price margin of 20% for Indian Vendors was made.
Revised PPP MII Order 2017 was promulgated on 04 June 2020. The concept of Classification of Local Suppliers based on the local content (Indigenous Content as the term is used in defence sector) of their products has been introduced. Class-I Local Suppliers – whose goods, services or works offered for procurement, have local content equal to or more than 50% - can avail significant advantage of eligibility across the procurement schemes as well as purchase preference over other category of Indian suppliers in local tenders and foreign suppliers in global tenders above Rs 200 Cr.
The objective of the interaction is to communicate the intent, salient provisions and implications of PPP MII Order 2017 to the Participants. The approach to harness the business opportunities which have been thrown up for Indian industry as a consequence of implementation of PPP MII 2017 will also be discussed.
Considering the wide-ranging implications to industries across the whole spectrum of products and services in defence sector, the Virtual Interaction is being organised on 14 September 2020 from 1600 to 1700 Hrs.
Registration for the Session will be done on ‘first come first serve’ basis. Number of Participants will be restricted to 40.
The applicable delegate fee is Rs. 500 (Inclusive of GST) for SIDM Members and Rs. 1,500 (Inclusive of GST) for Non SIDM Members.