Cabinet approves policy for providing preference to 'Make in India' in Government
procurement
- The Union Cabinet has approved a new policy under which preference will be provided to ‘Make in India’ in government procurement
- This policy will
- Boost domestic manufacturing and service provision
- Create employment
- It will stimulate the flow of capital and technology into domestic manufacturing and services
- It will provide thrust towards manufacture of parts, components, sub-components etc
- Increase Local content through partnerships, cooperation with local companies, establishing production units in India or Joint Ventures (JV) with Indian suppliers, increasing the participation of local employees in services and by training them
- The order covers autonomous bodies, government companies/ entities under the government’s control
- Under the policy, preference in Government procurement will be given to local suppliers
- Local suppliers are those whose goods or services meet prescribed minimum thresholds (ordinarily 50%) for local content. Local content is essentially domestic value addition
- In procurement of goods for rs. 50 lakhs and less, and where the Nodal Ministry determines that there is sufficient local capacity and local competition, only local suppliers will be eligible
- For procurements valued at more than rs. 50 lakhs (or where there is insufficient local capacity/ competition) if the lowest bid is not from a non-local supplier, the lowest-cost local supplier who is within a margin of 20% of the lowest bid, will be given the opportunity to match the lowest bid
- Small purchases of less than rs. 5 lakhs are exempted
- A Standing Committee in Department of Industrial Policy and Promotion will oversee the implementation of this order and issues arising therefrom, and make recommendations to Nodal Ministries and procuring entities
Cabinet approves phasing out Foreign Investment Promotion Board
- The Union Cabinet has given its approval to the phasing out of Foreign Investment Promotion Board (FIPB)
- The proposal entails abolishing the FIPB and allowing administrative Ministries/Departments to process applications for FDI requiring government approval
- Henceforth, the work relating to processing of applications for FDI shall now be handled by the concerned Ministries/Departments in consultation with the Department of Industrial Policy & Promotion (Ministry of Commerce)
- It will also issue the Standard Operating Procedure (SOP) for processing of applications and decision of the Government under the extant FDI policy
Cabinet approves Raising of Bonds of rs. 2360 crores for Renewable
Energy
- The Bonds will be raised by the Ministry of New & Renewable Energy (MNRE) through the Indian Renewable Energy Development Agency (IREDA) during FY18
- These funds will be used by MNRE in the approved programmes/schemes for solar park, green energy corridor, generation-based incentives for wind projects, CPSU and defence solar projects, viability gap funding for solar projects, roof-top solar, off-grid/grid-distributed and decentralized renewable power, investment in corporations and autonomous bodies etc
- The resources raised would be used for developing additional capacity in renewable energy sector which would result in generation of additional employment
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