Railways cite need to introduce clause in procurement process, to promote Indian vendors

Railways cite need to introduce clause in procurement process, to promote Indian vendors

Mangalore Today News Network

New Delhi, Jul 25, 2020: The Indian Railways have pushed for promoting Indian vendors and products under the government’s ‘Make in India’ scheme in the procurement process of the national carrier.

 

The national carrier on Saturday said there is a need to introduce a clause for promoting local content in procurement so that it get more bids from local vendors to give a boost to the government’s mission of Atma Nirbhar Bharat. The Railway ministry says it has sought the support of the Department for Promotion of Industry and Internal Trade to make suitable policy revisions, if required.

In a review meeting held on Saturday for steps to promote ‘Make in India’ products in procurement process, Union Railway Minister Piyush Goyal emphasized the need to increase the participation of local vendors in the procurement process.

Goyal instructed officers to interact with the industry to ensure increased participation of Indian manufacturing.

“While reviewing the steps to promote Make in India products in procurement process, it was emphasized to increase the participation of local vendors in procurement process. It was also decided that the local content clause in the procurement should be such that we may get more bids from local vendors/suppliers. This would also give a boost to mission Atma Nirbhar Bharat. Active support of DPIIT was sought to make suitable policy revisions, if required, to facilitate the efforts of Indian Railways in this direction,” the ministry said in a statement.

“It was felt that encouragement needs to be given to such vendors who can supply higher locally manufactured content. It was also suggested to create a FAQ section and a helpline number so that vendors may get clarity on various issues relating to procurement process,” it added.

The review meeting was also attended by Minister of State for Railways Suresh Angadi, Railway Board members, CEO, Government e-Marketplace (GeM) and representatives of DPIIT and Ministry of Commerce. Goyal emphasized the need to do procurement of approximately Rs 70,000 crore on the GeM platform to open up the market to the industry even at remote places and specially MSMEs.

“A need for devising strategies for further increasing the participation of Indian service providers and component manufacturers was felt. Government e-Marketplace (GeM) is a highly innovative idea in public procurement, across the globe,” the ministry said.

“Indian Railways, one of the largest procurement agencies of the Government of India, is integrating its procurement systems with GeM to use GeM’s full potential,” it added.

The e-marketplace by the Centre is intended to becoming the single point of public procurement portal for all agencies of the government.

This also comes days after the finance ministry amended its public finance rule that barred all government agencies to procure goods and services from bordering countries such as China and Pakistan on the ground of national security.

The Centre amended the General Financial Rules, 2017, imposing restrictions on public procurement from bidders of countries that share a land border with India, citing grounds of defence and national security.

Railways has also scrapped a tender for thermal cameras meant for ‘Covid-19 surveillance’ after Indian firms alleged that the tender specifications favoured a Chinese company.

Apex traders’ body Confederation of All India Traders (CAIT) earlier this month had also objected to the bid placed by a Chinese joint venture company for a global tender by the railways for manufacturing Vande Bharat trains.

This also comes at a time when India and China are involved in a tense border stand-off along the Line of Actual Control in Ladakh. A brutal brawl in Galwan Valley on June 15 led to 20 Indian and an unspecified number of Chinese soldiers being killed.


courtesy: Hindustan Times