PSB-funded power projects may have to procure local equipment


PSB-funded power projects may have to procure local equipment

The government is considering making it mandatory for all power projects funded by state-run banks to procure local equipment. A public procurement mechanism with purchase preference to domestic equipment manufacturers for future electricity generation, transmission and distribution projects is in the works, a senior government official said.

The mechanism will apply to any procurement order funded by government lenders. In line with the Department of Industrial Policy and Promotion’s public procurement order 2017, the mechanism proposes that tenders worth below Rs 50 lakh should be given only to local suppliers.

“Competitive orders of higher value shall give preference to Indian companies. The proposal aims at promoting ‘Make in India’ as well as protect the domestic industry from Chinese and Korean firms,” the official said. As per the proposal, if a local firm emerges as the lowest bidder, the tender will be awarded to that company. Read More

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