{"id":12177,"date":"2026-03-15T12:08:45","date_gmt":"2026-03-15T12:08:45","guid":{"rendered":"https:\/\/promotionexams.com\/?page_id=12177"},"modified":"2026-03-15T12:34:10","modified_gmt":"2026-03-15T12:34:10","slug":"make-in-india-order-notes","status":"publish","type":"page","link":"https:\/\/promotionexams.com\/?page_id=12177","title":{"rendered":"Make in India Order NOTES"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\n\n\n\n\nPublic Procurement (Preference to Make in India) Order 2017 \u2014 Study Notes<\/title>\n\n<style>\n *, *::before, *::after { box-sizing: border-box; margin: 0; padding: 0; }\n :root {\n --navy: #0a1520;\n --blue: #0d3d6b;\n --teal: #084d42;\n --amber: #7a4500;\n --red: #7a1a1a;\n --green: #0d4a25;\n --orange: #7a3800;\n --text: #0a0f18;\n --muted: #2a3540;\n --border: #c0ceda;\n }\n html { scroll-behavior: smooth; }\n body { font-family: 'Bookman Old Style', 'Bookman', 'URW Bookman L', Georgia, serif; background: #fff; color: var(--text); font-size: 15px; line-height: 1.85; }\n a { text-decoration: none; color: inherit; }\n\n \/* \u2500\u2500 HERO \u2500\u2500 *\/\n .hero {\n width: 100%;\n background: #0a1520;\n padding: 0;\n color: #fff;\n position: relative;\n overflow: hidden;\n }\n\n \/* Deep layered background *\/\n .hero-bg {\n position: absolute; inset: 0;\n background:\n radial-gradient(ellipse 900px 500px at 100% 0%, rgba(255,153,0,0.12) 0%, transparent 55%),\n radial-gradient(ellipse 700px 400px at 0% 100%, rgba(19,136,8,0.10) 0%, transparent 55%),\n radial-gradient(ellipse 500px 300px at 55% 50%, rgba(13,61,107,0.5) 0%, transparent 70%),\n linear-gradient(160deg, #0a1520 0%, #0d2540 40%, #0a1a30 100%);\n pointer-events: none;\n }\n\n \/* Fine grid lines *\/\n .hero-grid {\n position: absolute; 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align-items: center; gap: 5px;\n }\n .hero-meta-item::after { content: '\u00b7'; margin-left: 6px; color: rgba(255,255,255,0.25); }\n .hero-meta-item:last-child::after { display: none; }\n\n .hero-pills { display: flex; flex-wrap: wrap; gap: 8px; }\n .pill {\n background: rgba(255,255,255,0.07);\n border: 1px solid rgba(255,255,255,0.14);\n border-radius: 4px;\n padding: 5px 13px; font-size: 12px; font-weight: 600;\n font-family: 'Bookman Old Style', 'Bookman', Georgia, serif;\n color: rgba(255,255,255,0.85);\n }\n .pill strong { font-weight: 800; color: #fff; }\n .pill.saffron { border-color: rgba(255,153,0,0.4); background: rgba(255,153,0,0.1); }\n .pill.green-p { border-color: rgba(19,136,8,0.4); background: rgba(19,136,8,0.1); }\n\n \/* Right side \u2014 key stats panel *\/\n .hero-right {\n background: rgba(255,255,255,0.04);\n border: 1px solid rgba(255,255,255,0.1);\n border-radius: 12px;\n padding: 28px 24px;\n display: flex; flex-direction: column; gap: 18px;\n }\n .hero-right-title {\n font-size: 9px; font-weight: 800;\n text-transform: uppercase; letter-spacing: 0.18em;\n color: rgba(255,255,255,0.4);\n font-family: 'Bookman Old Style', 'Bookman', Georgia, serif;\n padding-bottom: 14px;\n border-bottom: 1px solid rgba(255,255,255,0.08);\n }\n .hero-stat {\n display: flex; align-items: center;\n justify-content: space-between;\n gap: 12px;\n }\n .hero-stat-label {\n font-size: 12px; color: rgba(255,255,255,0.6);\n font-family: 'Bookman Old Style', 'Bookman', Georgia, serif;\n line-height: 1.4; flex: 1;\n }\n .hero-stat-value {\n font-family: 'JetBrains Mono', monospace;\n font-size: 18px; font-weight: 700;\n white-space: nowrap; flex-shrink: 0;\n }\n .hero-stat-value.saffron { color: #FFB733; }\n .hero-stat-value.green-v { color: #4acd3a; }\n .hero-stat-value.white-v { color: #ffffff; }\n .hero-stat-divider {\n height: 1px; background: rgba(255,255,255,0.07); margin: 0 -4px;\n }\n\n \/* Order reference strip *\/\n .hero-ref-strip {\n background: rgba(255,255,255,0.04);\n border-top: 1px solid rgba(255,255,255,0.07);\n padding: 14px 56px;\n position: relative; 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display: grid; grid-template-columns: 265px 1fr; gap: 56px; align-items: start; }\n\n \/* \u2500\u2500 SIDEBAR \u2500\u2500 *\/\n .sidebar { position: sticky; top: 24px; max-height: calc(100vh - 48px); }\n .toc-card { background: #fff; border: 1px solid var(--border); border-radius: 8px; padding: 18px 20px; max-height: calc(100vh - 48px); overflow-y: auto; }\n .toc-card-title { font-size: 10px; font-weight: 800; text-transform: uppercase; letter-spacing: 0.16em; color: var(--muted); margin-bottom: 14px; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n .toc-list { list-style: none; }\n .toc-list > li { margin-bottom: 6px; }\n .toc-list > li > a { display: block; font-size: 12.5px; font-weight: 800; color: #0a0f18; padding: 6px 10px; border-radius: 5px; border-left: 2px solid transparent; transition: all 0.15s; line-height: 1.4; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n .toc-list > li > a:hover { background: #f0f4f8; color: var(--blue); }\n .toc-list > li > a.active { background: #e8f0f8; 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}\n .chapter-heading-block h2 { font-family: 'Bookman Old Style', 'Bookman', 'URW Bookman L', Georgia, serif; font-size: 22px; font-weight: 700; color: var(--navy); margin: 0; }\n\n \/* \u2500\u2500 SECTION HEADING \u2500\u2500 *\/\n .section-heading-block { display: flex; align-items: center; gap: 12px; margin: 30px 0 14px; }\n .section-badge { background: var(--blue); color: #fff; font-size: 9px; font-weight: 800; padding: 3px 11px; border-radius: 3px; letter-spacing: 0.08em; white-space: nowrap; flex-shrink: 0; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n .section-badge.teal { background: var(--teal); }\n .section-badge.amber { background: var(--amber); }\n .section-badge.red { background: var(--red); }\n .section-badge.green { background: var(--green); }\n .section-badge.orange { background: var(--orange); }\n .section-heading-block h3 { font-size: 17px; font-weight: 700; color: var(--navy); margin: 0; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n\n \/* \u2500\u2500 PROSE \u2500\u2500 *\/\n .article p { color: #0a0f18; margin-bottom: 12px; font-size: 14.5px; line-height: 1.85; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n .article strong { color: #000; }\n\n \/* \u2500\u2500 ICON LIST \u2500\u2500 *\/\n .icon-list { list-style: none; margin: 0 0 14px; display: flex; flex-direction: column; gap: 8px; }\n .icon-list li { display: flex; align-items: flex-start; gap: 10px; font-size: 14.5px; color: #0a0f18; line-height: 1.78; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n .icon-list li .ico { font-size: 15px; flex-shrink: 0; margin-top: 4px; width: 20px; text-align: center; }\n .icon-list-sub { list-style: none; margin: 8px 0 0 30px; display: flex; flex-direction: column; gap: 6px; }\n .icon-list-sub li { display: flex; align-items: flex-start; gap: 8px; font-size: 14px; color: #1a2535; line-height: 1.75; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n .icon-list-sub li .ico { font-size: 13px; 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}\n .callout.orange .callout-label { color: var(--orange); }\n .callout p, .callout li { font-size: 14px; color: #0a0f18; line-height: 1.82; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n .callout ul { list-style: none; display: flex; flex-direction: column; gap: 6px; padding-left: 0; }\n\n \/* \u2500\u2500 STAT CARDS \u2500\u2500 *\/\n .stat-grid { display: grid; grid-template-columns: repeat(4, 1fr); gap: 14px; margin: 20px 0 28px; }\n .stat-card { border: 1.5px solid var(--border); border-radius: 10px; padding: 20px 16px; text-align: center; background: #fff; }\n .stat-card.blue-hi { border-color: #6a9ec0; background: #ddeefa; }\n .stat-card.teal-hi { border-color: #4aaa98; background: #d8f0ea; }\n .stat-card.amber-hi { border-color: #b08040; background: #f5e8cc; }\n .stat-card.green-hi { border-color: #4aaa70; background: #d8f0e0; }\n .stat-card.red-hi { border-color: #c08080; background: #f5e0e0; }\n .stat-card .big-icon { font-size: 32px; margin-bottom: 10px; display: block; 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border-radius: 4px; padding: 2px 9px; font-family: 'JetBrains Mono', monospace; font-size: 13px; font-weight: 700; }\n\n \/* \u2500\u2500 PROCEDURE CARD \u2500\u2500 *\/\n .proc-card { border: 2px solid var(--blue); border-radius: 10px; padding: 22px 26px; background: #e5eff8; margin: 20px 0 26px; position: relative; }\n .proc-stamp { position: absolute; top: -11px; left: 20px; background: var(--blue); color: #fff; font-size: 10px; font-weight: 800; letter-spacing: 0.1em; text-transform: uppercase; padding: 3px 14px; border-radius: 4px; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n .proc-card h4 { font-size: 15px; font-weight: 700; color: #050d18; margin-top: 8px; margin-bottom: 12px; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n\n \/* \u2500\u2500 WARNING CARD \u2500\u2500 *\/\n .warn-card { border: 2px solid var(--red); border-radius: 10px; padding: 22px 26px; background: #f5dada; margin: 20px 0 26px; position: relative; }\n .warn-stamp { position: absolute; 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}\n .compare-table tr:nth-child(even) td { background: #edf4f8; }\n .tag-yes { background: #d5f0e0; color: var(--green); border-radius: 4px; padding: 2px 8px; font-size: 12px; font-weight: 700; }\n .tag-no { background: #f5d5d5; color: var(--red); border-radius: 4px; padding: 2px 8px; font-size: 12px; font-weight: 700; }\n\n \/* \u2500\u2500 STANDING COMMITTEE CARD \u2500\u2500 *\/\n .sc-member-list { list-style: none; display: flex; flex-direction: column; gap: 0; margin: 16px 0 24px; border: 1px solid var(--border); border-radius: 8px; overflow: hidden; }\n .sc-member { display: flex; align-items: center; gap: 16px; padding: 12px 18px; border-bottom: 1px solid var(--border); background: #fff; }\n .sc-member:last-child { border-bottom: none; }\n .sc-member:nth-child(even) { background: #edf4f8; }\n .sc-member .sm-role { font-family: 'JetBrains Mono', monospace; font-size: 11px; font-weight: 700; color: #fff; padding: 3px 10px; border-radius: 4px; flex-shrink: 0; white-space: nowrap; }\n .sm-chairman { background: var(--navy); }\n .sm-member { background: var(--blue); }\n .sm-convenor { background: var(--teal); }\n .sc-member .sm-text { font-size: 13.5px; color: #0a0f18; line-height: 1.7; font-family: 'Bookman Old Style', 'Bookman', Georgia, serif; }\n\n \/* \u2500\u2500 DIVIDER \u2500\u2500 *\/\n .section-divider { border: none; border-top: 1.5px dashed #b0c0d0; margin: 44px 0; }\n\n \/* \u2500\u2500 RESPONSIVE \u2500\u2500 *\/\n @media (max-width: 860px) {\n .layout { grid-template-columns: 1fr; gap: 32px; padding: 28px 24px 64px; }\n .sidebar { position: static; }\n .stat-grid { grid-template-columns: 1fr 1fr; }\n .supplier-grid { grid-template-columns: 1fr; }\n .hero-inner { grid-template-columns: 1fr; gap: 28px; padding: 44px 28px 48px; }\n .hero-right { display: none; }\n .hero-ref-strip { padding: 14px 28px; }\n .hero-chakra { display: none; }\n .breadcrumb-bar { padding: 10px 24px; }\n }\n @media (max-width: 520px) {\n .hero h1 { font-size: 22px; }\n .stat-grid { grid-template-columns: 1fr 1fr; }\n .hero-inner { padding: 36px 20px 42px; }\n .hero-ref-strip { padding: 12px 20px; gap: 14px; }\n }\n<\/style>\n<\/head>\n<body>\n\n<!-- HERO -->\n<div class=\"hero\">\n <div class=\"hero-bg\"><\/div>\n <div class=\"hero-grid\"><\/div>\n <div class=\"hero-chakra\"><\/div>\n <div class=\"hero-tricolour\"><\/div>\n\n <div class=\"hero-inner\">\n <div class=\"hero-left\">\n <div class=\"hero-eyebrow\">\ud83c\uddee\ud83c\uddf3 DPIIT \u00b7 Ministry of Commerce & Industry<\/div>\n <h1><span class=\"h1-accent\">Public Procurement<br>Preference to Make in India<br>Order 2017<\/span><\/h1>\n\n <\/div>\n <\/div>\n\n \n<\/div>\n\n<!-- BREADCRUMB -->\n<div class=\"breadcrumb-bar\">\n <div class=\"breadcrumb-inner\">\n <a href=\"#\">Home<\/a><span class=\"sep\">\u203a<\/span>\n <a href=\"#\">Procurement Policy<\/a><span class=\"sep\">\u203a<\/span>\n MII Public Procurement Order 2017 (Revised 2024) \u2014 Study Notes\n <\/div>\n<\/div>\n\n<div class=\"layout\">\n\n <!-- SIDEBAR -->\n <aside class=\"sidebar\">\n <div class=\"toc-card\">\n <div class=\"toc-card-title\">Table of Contents<\/div>\n <ul class=\"toc-list\">\n <li>\n <a href=\"#ch1\">Part I \u2014 Preamble & Definitions<\/a>\n <ul class=\"toc-sub\">\n <li><a href=\"#para1\">Para 1 \u2014 Issuing Authority & Basis<\/a><\/li>\n <li><a href=\"#para2\">Para 2 \u2014 Definitions<\/a><\/li>\n <li><a href=\"#para2a\">Para 2A \u2014 PLI Scheme Treatment<\/a><\/li>\n <\/ul>\n <\/li>\n <li>\n <a href=\"#ch2\">Part II \u2014 Eligibility & Supplier Classes<\/a>\n <ul class=\"toc-sub\">\n <li><a href=\"#para3\">Para 3 \u2014 Eligibility of Supplier Classes<\/a><\/li>\n <li><a href=\"#para3-1\">Para 3.1 \u2014 Mandatory Sourcing (SI\/EPC)<\/a><\/li>\n <\/ul>\n <\/li>\n <li>\n <a href=\"#ch3\">Part III \u2014 Purchase Preference Procedure<\/a>\n <ul class=\"toc-sub\">\n <li><a href=\"#para3a\">Para 3A \u2014 Purchase Preference<\/a><\/li>\n <li><a href=\"#para3a-b\">Para 3A(b) \u2014 Divisible Goods\/Works<\/a><\/li>\n <li><a href=\"#para3a-c\">Para 3A(c) \u2014 Indivisible \/ Services<\/a><\/li>\n <li><a href=\"#para3a-d\">Para 3A(d) \u2014 Class-II Exclusion<\/a><\/li>\n <li><a href=\"#para3b\">Para 3B \u2014 Multiple Bidders<\/a><\/li>\n <\/ul>\n <\/li>\n <li>\n <a href=\"#ch4\">Part IV \u2014 Key Thresholds & Exemptions<\/a>\n <ul class=\"toc-sub\">\n <li><a href=\"#para4\">Para 4 \u2014 Small Purchase Exemption<\/a><\/li>\n <li><a href=\"#para4a\">Para 4A \u2014 Spares & Consumables<\/a><\/li>\n <li><a href=\"#para5\">Para 5 \u2014 Minimum Local Content<\/a><\/li>\n <li><a href=\"#para6\">Para 6 \u2014 Margin of Purchase Preference<\/a><\/li>\n <li><a href=\"#para7\">Para 7 \u2014 Advance Specification<\/a><\/li>\n <li><a href=\"#para8\">Para 8 \u2014 Government e-Marketplace (GeM)<\/a><\/li>\n <\/ul>\n <\/li>\n <li>\n <a href=\"#ch5\">Part V \u2014 Verification & Compliance<\/a>\n <ul class=\"toc-sub\">\n <li><a href=\"#para9\">Para 9 \u2014 Verification of Local Content<\/a><\/li>\n <li><a href=\"#para10\">Para 10 \u2014 Tenders & Specifications<\/a><\/li>\n <li><a href=\"#para10a\">Para 10A \u2014 Non-compliance Action<\/a><\/li>\n <li><a href=\"#para11\">Para 11 \u2014 Assessment by Nodal Ministries<\/a><\/li>\n <li><a href=\"#para12\">Para 12 \u2014 Increase in Min. Local Content<\/a><\/li>\n <\/ul>\n <\/li>\n <li>\n <a href=\"#ch6\">Part VI \u2014 Special Provisions<\/a>\n <ul class=\"toc-sub\">\n <li><a href=\"#para13\">Para 13 \u2014 Technology Collaboration \/ Phased Indigenization<\/a><\/li>\n <li><a href=\"#para13a\">Para 13A \u2014 JV Threshold<\/a><\/li>\n <li><a href=\"#para14\">Para 14 \u2014 Power to Grant Exemption<\/a><\/li>\n <li><a href=\"#para15\">Para 15 \u2014 Govt. Companies<\/a><\/li>\n <\/ul>\n <\/li>\n <li>\n <a href=\"#ch7\">Part VII \u2014 Standing Committee & Misc.<\/a>\n <ul class=\"toc-sub\">\n <li><a href=\"#para16\">Para 16 \u2014 Standing Committee<\/a><\/li>\n <li><a href=\"#para17\">Para 17 \u2014 Functions of Standing Committee<\/a><\/li>\n <li><a href=\"#para18\">Para 18 \u2014 Removal of Difficulties<\/a><\/li>\n <li><a href=\"#para19\">Para 19 \u2014 Existing Policies<\/a><\/li>\n <li><a href=\"#para20\">Para 20 \u2014 Transitional Provision<\/a><\/li>\n <\/ul>\n <\/li>\n <\/ul>\n <\/div>\n <\/aside>\n\n <main class=\"article\">\n\n <!-- \u2550\u2550\u2550 PART I \u2550\u2550\u2550 -->\n <div class=\"chapter-heading-block\" id=\"ch1\">\n <span class=\"chapter-badge\">PART I<\/span>\n <h2>Preamble, Basis & Definitions<\/h2>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para1\">\n <span class=\"section-badge\">PARA 1<\/span>\n <h3>Background & Legal Basis<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udcdc<\/span><span>Issued under <strong>Rule 153(iii) of GFR 2017<\/strong> by DPIIT. Addressed to all Central Ministries, Departments, CPSUs.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udcc5<\/span><span>Original Order: <strong>15.06.2017<\/strong>. Revised on 28.05.2018, 29.05.2019, 04.06.2020, 16.09.2020. Latest revision: <strong>19.07.2024<\/strong> \u2014 modifies Paras 2, 3, 5, 10 & 13.<\/span><\/li>\n <li><span class=\"ico\">\ud83c\udfaf<\/span><span>Core purpose: Use the <em>scale of Govt. procurement<\/em> to build domestic manufacturing capacity, create employment, and advance Make in India.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para2\">\n <span class=\"section-badge\">PARA 2<\/span>\n <h3>Definitions \u2014 Exam-Ready Summary<\/h3>\n <\/div>\n\n <table class=\"compare-table\">\n <thead><tr><th>Term<\/th><th>In Plain English<\/th><\/tr><\/thead>\n <tbody>\n <tr><td><strong>Local Content (LC)<\/strong><\/td><td>% of value added in India. Formula: <em>(Total value ex. domestic indirect taxes \u2212 Imported content incl. customs) \u00f7 Total value \u00d7 100<\/em>. Nodal Ministry can prescribe a different formula.<\/td><\/tr>\n <tr><td><strong>Class-I Local Supplier<\/strong><\/td><td>LC \u2265 prescribed minimum for Class-I. Default: <strong>50%<\/strong>. Gets purchase preference.<\/td><\/tr>\n <tr><td><strong>Class-II Local Supplier<\/strong><\/td><td>LC \u2265 Class-II minimum but < Class-I minimum. Default band: <strong>20%\u201350%<\/strong>. <em>No<\/em> purchase preference.<\/td><\/tr>\n <tr><td><strong>Non-Local Supplier<\/strong><\/td><td>LC < Class-II minimum. Permitted only in Global tenders. No preference.<\/td><\/tr>\n <tr><td><strong>L1<\/strong><\/td><td>The lowest evaluated bid in a procurement process.<\/td><\/tr>\n <tr><td><strong>Margin of Purchase Preference<\/strong><\/td><td>How much above L1 a Class-I supplier can quote and still win preference. Fixed at <strong>20%<\/strong>.<\/td><\/tr>\n <tr><td><strong>Nodal Ministry<\/strong><\/td><td>The Ministry\/Department responsible for a specific item \u2014 sets LC thresholds for that item.<\/td><\/tr>\n <tr><td><strong>Procuring Entity<\/strong><\/td><td>Any Central Ministry, Dept., attached\/subordinate office, autonomous body, or Govt. company.<\/td><\/tr>\n <tr><td><strong>Works<\/strong><\/td><td>Per Rule 130 GFR-2017 + turnkey works. For this Order: EPC contracts = Works; SI contracts = Services.<\/td><\/tr>\n <\/tbody>\n <\/table>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">\u26a0\ufe0f Three things always excluded from LC calculation<\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\u2716<\/span><span><strong>Imported goods sourced from resellers\/distributors<\/strong> \u2014 even if bought locally in India.<\/span><\/li>\n <li><span class=\"ico\">\u2716<\/span><span><strong>Licence fees, royalties, technical charges<\/strong> remitted outside India.<\/span><\/li>\n <li><span class=\"ico\">\u2716<\/span><span><strong>Repackaged \/ Refurbished \/ Rebranded imported products<\/strong> \u2014 treated as mere reselling. (Refurbishing = repair, no new goods; Repackaging = bulk to smaller; Rebranding = new label on imported product.)<\/span><\/li>\n <\/ul>\n <\/div>\n\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udcca<\/span><span><strong>Multiple-item contracts:<\/strong> Use <strong>weighted average<\/strong> of local content across all items.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udcc4<\/span><span><strong>Resellers<\/strong> must submit OEM certificate for country of origin and full cost break-up including royalties\/licence fees paid abroad.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para2a\">\n <span class=\"section-badge teal\">PARA 2A<\/span>\n <h3>PLI Scheme Manufacturers \u2014 Automatic Class-II Status<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83c\udfed<\/span><span>Any manufacturer who has <strong>received PLI incentive<\/strong> for an item is automatically treated as <strong>Class-II local supplier<\/strong> for that item \u2014 regardless of actual LC.<\/span><\/li>\n <li><span class=\"ico\">\u2b06\ufe0f<\/span><span>If their LC \u2265 Class-I threshold \u2192 they qualify as Class-I (the higher class applies).<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udcc5<\/span><span>Applicable <strong>only for the time period notified by the PLI Ministry<\/strong> \u2014 not permanent.<\/span><\/li>\n <\/ul>\n\n <hr class=\"section-divider\">\n\n <!-- \u2550\u2550\u2550 PART II \u2550\u2550\u2550 -->\n <div class=\"chapter-heading-block\" id=\"ch2\">\n <span class=\"chapter-badge\">PART II<\/span>\n <h2>Supplier Classes & Eligibility<\/h2>\n <\/div>\n\n <div class=\"supplier-grid\">\n <div class=\"sup-card c1\">\n <span class=\"sc-icon\">\ud83e\udd47<\/span>\n <div class=\"sc-label\">Top tier<\/div>\n <div class=\"sc-title\">Class-I Local Supplier<\/div>\n <p>Eligible in ALL procurement types. The <strong>only<\/strong> category that gets purchase preference. Mandatory for Para 3(a) notified items.<\/p>\n <span class=\"sc-threshold\">\u2265 50% LC<\/span>\n <\/div>\n <div class=\"sup-card c2\">\n <span class=\"sc-icon\">\ud83e\udd48<\/span>\n <div class=\"sc-label\">Middle tier<\/div>\n <div class=\"sc-title\">Class-II Local Supplier<\/div>\n <p>Eligible in domestic procurement. <strong>NOT eligible for Para 3(a) items.<\/strong> Eligible in Global tenders. <strong>Gets zero purchase preference.<\/strong><\/p>\n <span class=\"sc-threshold\">\u2265 20%, < 50% LC<\/span>\n <\/div>\n <div class=\"sup-card cn\">\n <span class=\"sc-icon\">\ud83c\udf10<\/span>\n <div class=\"sc-label\">Lowest \/ foreign<\/div>\n <div class=\"sc-title\">Non-Local Supplier<\/div>\n <p>Eligible <strong>only in Global tenders.<\/strong> Completely excluded from domestic procurement. No preference of any kind.<\/p>\n <span class=\"sc-threshold\">< 20% LC<\/span>\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para3\">\n <span class=\"section-badge\">PARA 3<\/span>\n <h3>Who Can Bid \u2014 by Procurement Type<\/h3>\n <\/div>\n\n <table class=\"compare-table\">\n <thead><tr><th>Supplier<\/th><th>Para 3(a): Sufficient Local Capacity Item<\/th><th>Para 3(b): Other Domestic<\/th><th>Global Tender<\/th><\/tr><\/thead>\n <tbody>\n <tr><td><strong>Class-I<\/strong><\/td><td><span class=\"tag-yes\">\u2714 Eligible<\/span><\/td><td><span class=\"tag-yes\">\u2714 Eligible<\/span><\/td><td><span class=\"tag-yes\">\u2714 Eligible<\/span><\/td><\/tr>\n <tr><td><strong>Class-II<\/strong><\/td><td><span class=\"tag-no\">\u2718 Excluded<\/span><\/td><td><span class=\"tag-yes\">\u2714 Eligible<\/span><\/td><td><span class=\"tag-yes\">\u2714 Eligible<\/span><\/td><\/tr>\n <tr><td><strong>Non-Local<\/strong><\/td><td><span class=\"tag-no\">\u2718 Excluded<\/span><\/td><td><span class=\"tag-no\">\u2718 Excluded<\/span><\/td><td><span class=\"tag-yes\">\u2714 Eligible<\/span><\/td><\/tr>\n <\/tbody>\n <\/table>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">\u26a0\ufe0f Global Tender below \u20b9200 Crore \u2014 Restricted<\/div>\n <p>For items not under Para 3(a), Global Tender cannot be issued if estimated value < <strong>\u20b9200 Crore<\/strong> \u2014 unless approved by Competent Authority designated by Dept. of Expenditure (Rule 161(iv) GFR 2017).<\/p>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para3-1\">\n <span class=\"section-badge teal\">PARA 3.1<\/span>\n <h3>Mandatory Class-I Sourcing in SI\/EPC\/Turnkey Tenders<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\u2705<\/span><span>Items notified by Nodal Ministry as having sufficient local capacity (with specific HSN codes) \u2192 <strong>must be sourced from Class-I only<\/strong> in SI\/EPC\/Turnkey\/Service tenders. No exceptions without approval.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udd13<\/span><span>Relaxation only on <strong>case-specific basis<\/strong> with approval of: Secretary of Administrative Ministry, or designated Competent Authority.<\/span><\/li>\n <\/ul>\n\n <hr class=\"section-divider\">\n\n <!-- \u2550\u2550\u2550 PART III \u2550\u2550\u2550 -->\n <div class=\"chapter-heading-block\" id=\"ch3\">\n <span class=\"chapter-badge\">PART III<\/span>\n <h2>Purchase Preference \u2014 How It Works<\/h2>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para3a\">\n <span class=\"section-badge\">PARA 3A<\/span>\n <h3>The Golden Rule<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\u2705<\/span><span><strong>Class-I<\/strong> \u2192 gets preference. <strong>Class-II and Non-local<\/strong> \u2192 get zero preference, ever.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udd11<\/span><span>The preference mechanism differs based on whether the procurement is <em>divisible<\/em> or <em>indivisible<\/em>.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para3a-b\">\n <span class=\"section-badge\">PARA 3A(b)<\/span>\n <h3>Divisible Goods\/Works \u2014 Preference Mechanism<\/h3>\n <\/div>\n <div class=\"proc-card\">\n <div class=\"proc-stamp\">\ud83d\udccb When the quantity can be split between suppliers<\/div>\n <h4>Step-by-Step<\/h4>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\u2460<\/span><span>Evaluate all bids. Identify <strong>L1<\/strong>. If L1 = Class-I \u2192 <strong>full quantity to L1<\/strong>. Stop.<\/span><\/li>\n <li><span class=\"ico\">\u2461<\/span><span>If L1 \u2260 Class-I \u2192 award <strong>50% to L1<\/strong>. Invite lowest Class-I bidder to match L1 for the remaining 50%, <em>only if<\/em> their price is within <strong>L1 + 20%<\/strong>.<\/span><\/li>\n <li><span class=\"ico\">\u2462<\/span><span>If that Class-I declines or accepts partial \u2192 move to <strong>next higher Class-I within 20% margin<\/strong>, repeat.<\/span><\/li>\n <li><span class=\"ico\">\u2463<\/span><span>Any balance still uncovered \u2192 can be ordered on <strong>L1 bidder<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para3a-c\">\n <span class=\"section-badge\">PARA 3A(c)<\/span>\n <h3>Indivisible Goods\/Works & Services \u2014 Preference Mechanism<\/h3>\n <\/div>\n <div class=\"proc-card\">\n <div class=\"proc-stamp\">\ud83d\udccb When only one supplier can win the whole contract<\/div>\n <h4>Step-by-Step<\/h4>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\u2460<\/span><span>Identify L1. If L1 = Class-I \u2192 <strong>award to L1<\/strong>. Stop.<\/span><\/li>\n <li><span class=\"ico\">\u2461<\/span><span>If L1 \u2260 Class-I \u2192 invite lowest Class-I (within 20% margin) to <strong>match L1 exactly<\/strong>. If matched \u2192 award to Class-I.<\/span><\/li>\n <li><span class=\"ico\">\u2462<\/span><span>If lowest Class-I declines \u2192 invite next higher Class-I within 20% margin. Repeat.<\/span><\/li>\n <li><span class=\"ico\">\u2463<\/span><span>If <strong>no Class-I within 20% agrees<\/strong> to match \u2192 award to L1.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para3a-d\">\n <span class=\"section-badge red\">PARA 3A(d)<\/span>\n <h3>Class-II \u2014 Absolute Bar on Preference<\/h3>\n <\/div>\n <div class=\"callout red\">\n <div class=\"callout-label\">\ud83d\udeab Absolute Rule \u2014 No Exceptions<\/div>\n <p>Class-II local supplier gets <strong>zero purchase preference in any procurement<\/strong> \u2014 whether divisible, indivisible, goods, works, or services. There is no scenario in which Class-II gets preference.<\/p>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para3b\">\n <span class=\"section-badge\">PARA 3B<\/span>\n <h3>Multiple Bidder Tenders<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">a.<\/span><span><strong>Para 3(a) item<\/strong> (sufficient LC notified) \u2192 only Class-I can bid \u2192 all awardees will be Class-I.<\/span><\/li>\n <li><span class=\"ico\">b.<\/span><span><strong>Other items<\/strong> \u2192 Class-II and Non-local may also participate per this Order.<\/span><\/li>\n <li><span class=\"ico\">c.<\/span><span><strong>50% threshold rule:<\/strong> If Class-I suppliers qualify for \u2265 50% of tendered quantity \u2192 award normally to all. If Class-I < 50% \u2192 give preference to Class-I over others within <strong>20% margin of highest qualifying bid<\/strong> until Class-I total reaches 50%.<\/span><\/li>\n <li><span class=\"ico\">d.<\/span><span>Within Class-I, start with the <strong>lowest quoting<\/strong> (within 20% margin), subject to per-supplier quantity limits. If ineligible \u2192 next higher Class-I.<\/span><\/li>\n <li><span class=\"ico\">e.<\/span><span>Entities may add tender-specific criteria within these policy limits.<\/span><\/li>\n <\/ul>\n\n <hr class=\"section-divider\">\n\n <!-- \u2550\u2550\u2550 PART IV \u2550\u2550\u2550 -->\n <div class=\"chapter-heading-block\" id=\"ch4\">\n <span class=\"chapter-badge\">PART IV<\/span>\n <h2>Thresholds, Exemptions & Key Numbers<\/h2>\n <\/div>\n\n <div class=\"stat-grid\">\n <div class=\"stat-card blue-hi\">\n <span class=\"big-icon\">\u2702\ufe0f<\/span>\n <div class=\"stat-label\">Small Purchase Exempt<\/div>\n <div class=\"stat-amount\"><\u20b95L<\/div>\n <div class=\"stat-sub\">Full Order inapplicable. Anti-splitting rule enforced.<\/div>\n <\/div>\n <div class=\"stat-card green-hi\">\n <span class=\"big-icon\">\ud83c\udfed<\/span>\n <div class=\"stat-label\">Class-I Default LC<\/div>\n <div class=\"stat-amount\">50%<\/div>\n <div class=\"stat-sub\">Nodal Ministry can only go <em>higher<\/em>, never lower.<\/div>\n <\/div>\n <div class=\"stat-card amber-hi\">\n <span class=\"big-icon\">\ud83c\udfd7\ufe0f<\/span>\n <div class=\"stat-label\">Class-II Default LC<\/div>\n <div class=\"stat-amount\">20%<\/div>\n <div class=\"stat-sub\">Nodal Ministry can only go <em>higher<\/em>, never lower.<\/div>\n <\/div>\n <div class=\"stat-card teal-hi\">\n <span class=\"big-icon\">\ud83d\udcca<\/span>\n <div class=\"stat-label\">Preference Margin<\/div>\n <div class=\"stat-amount\">20%<\/div>\n <div class=\"stat-sub\">Fixed. Only reducible by Admin. Dept. with Minister's approval.<\/div>\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para4\">\n <span class=\"section-badge\">PARA 4<\/span>\n <h3>Small Purchase Exemption<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\u2705<\/span><span>Procurement < <strong>\u20b95 lakhs<\/strong> \u2192 fully exempt from this Order.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udeab<\/span><span>Procuring entities must <strong>not split contracts<\/strong> to stay under \u20b95L and avoid the Order.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para4a\">\n <span class=\"section-badge\">PARA 4A<\/span>\n <h3>Spares & Consumables \u2014 Closed Systems Exemption<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\u2705<\/span><span>Spares, consumables for <strong>closed systems<\/strong>, and Maintenance\/Service contracts with <strong>OEM \/ OES \/ OPM<\/strong> \u2192 fully exempt from this Order.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para5\">\n <span class=\"section-badge\">PARA 5<\/span>\n <h3>Minimum Local Content \u2014 Key Rules<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udccc<\/span><span>Default thresholds: Class-I = <strong>50%<\/strong>, Class-II = <strong>20%<\/strong>.<\/span><\/li>\n <li><span class=\"ico\">\u2b06\ufe0f<\/span><span>Nodal Ministry <strong>may only prescribe higher<\/strong> percentages \u2014 never lower than defaults.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udccb<\/span><span>If Nodal Ministry has not notified higher thresholds \u2192 defaults (50%\/20%) apply automatically.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para6\">\n <span class=\"section-badge\">PARA 6<\/span>\n <h3>Margin of Purchase Preference<\/h3>\n <\/div>\n <div class=\"highlight-banner\">\n <div class=\"hb-icon\">\ud83d\udcca<\/div>\n <div>\n <h4>Fixed at 20% above L1<\/h4>\n <p>Class-I can be priced up to <span class=\"hb-badge\">L1 \u00d7 1.20<\/span> and still win preference. Cannot be changed mid-procurement. Can only be reduced below 20% by the Administrative Department with <span class=\"hb-badge\">written Minister-in-Charge approval<\/span> (Para 14).<\/p>\n <\/div>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para7\">\n <span class=\"section-badge\">PARA 7<\/span>\n <h3>Advance Specification \u2014 Lock-in Rule<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udccb<\/span><span>Minimum LC, preference margin, and preference procedure must be <strong>stated upfront in the tender notice<\/strong>.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udd12<\/span><span>Once stated, <strong>cannot be changed<\/strong> during that procurement transaction.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para8\">\n <span class=\"section-badge\">PARA 8<\/span>\n <h3>GeM (Government e-Marketplace)<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83c\udff7\ufe0f<\/span><span>GeM to <strong>mark items meeting minimum LC<\/strong> at the time of item registration.<\/span><\/li>\n <li><span class=\"ico\">\u2699\ufe0f<\/span><span>GeM to provide <strong>automated price comparison<\/strong> \u2014 with and without purchase preference.<\/span><\/li>\n <li><span class=\"ico\">\u2705<\/span><span>GeM to seek <strong>supplier's consent<\/strong> before exercising purchase preference.<\/span><\/li>\n <\/ul>\n\n <hr class=\"section-divider\">\n\n <!-- \u2550\u2550\u2550 PART V \u2550\u2550\u2550 -->\n <div class=\"chapter-heading-block\" id=\"ch5\">\n <span class=\"chapter-badge\">PART V<\/span>\n <h2>Verification, Compliance & Penalties<\/h2>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para9\">\n <span class=\"section-badge\">PARA 9<\/span>\n <h3>Local Content Verification \u2014 Three-Stage Framework<\/h3>\n <\/div>\n\n <table class=\"compare-table\">\n <thead><tr><th>When<\/th><th>Threshold<\/th><th>What is Required<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>At tender stage<\/td><td>All values<\/td><td><strong>Self-certification<\/strong> of LC % + location of value addition<\/td><\/tr>\n <tr><td>At tender stage<\/td><td>> \u20b910 Crore<\/td><td>Certificate from <strong>statutory auditor \/ cost auditor<\/strong> (companies) or <strong>CA \/ CMA in practice<\/strong> (others)<\/td><\/tr>\n <tr><td>At execution<\/td><td>> \u20b910 Crore<\/td><td><strong>CA\/CMA-certified LC certificate.<\/strong> If not possible at execution \u2192 may be submitted after contract completion, within time acceptable to procuring entity<\/td><\/tr>\n <\/tbody>\n <\/table>\n\n <div class=\"warn-card\">\n <div class=\"warn-stamp\">\u26a0\ufe0f Penalties for LC Non-compliance<\/div>\n <h4>What happens when a supplier fails to meet the declared LC?<\/h4>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udcb8<\/span><span>If supplier's <strong>category drops<\/strong> (e.g., Class-I \u2192 Class-II or Non-local; Class-II \u2192 Non-local) \u2192 <strong>penalty up to 10% of contract value<\/strong>.<\/span><\/li>\n <li><span class=\"ico\">\u2705<\/span><span>Contract itself will <strong>not be terminated<\/strong> \u2014 penalty only.<\/span><\/li>\n <li><span class=\"ico\">\u26d4<\/span><span><strong>False declaration<\/strong> \u2192 breach of Code of Integrity (Rule 175 GFR) \u2192 debarment <strong>up to 2 years<\/strong> (Rule 151(iii) GFR) + other legal action.<\/span><\/li>\n <li><span class=\"ico\">\ud83c\udf10<\/span><span>Debarment by any entity is <strong>cross-entity<\/strong> \u2014 applies to all other procuring entities for the same duration, effective from date of website upload.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udd0d<\/span><span>Nodal Ministries may conduct <strong>random independent verification<\/strong> of self-declarations using internal\/external expert committees.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udcb0<\/span><span>Fees may be prescribed for complaint filing.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udccb<\/span><span>Dept. of Expenditure to maintain a <strong>centralised\/decentralised debarment list<\/strong> on website(s), ensuring no disruption to ongoing procurements.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para10\">\n <span class=\"section-badge\">PARA 10<\/span>\n <h3>Tender Specifications \u2014 Rules for Procuring Entities<\/h3>\n <\/div>\n\n <table class=\"compare-table\">\n <thead><tr><th>Sub-Para<\/th><th>Rule<\/th><\/tr><\/thead>\n <tbody>\n <tr><td><strong>10(a)<\/strong><\/td><td>Eligibility conditions must <strong>NOT ask for proof of supply in other countries or proof of exports<\/strong>.<\/td><\/tr>\n <tr><td><strong>10(b)<\/strong><\/td><td>Turnover, production capacity, and financial conditions must <strong>not unreasonably exclude<\/strong> Class-I\/II beyond what quality and creditworthiness genuinely require.<\/td><\/tr>\n <tr><td><strong>10(c)<\/strong><\/td><td>All existing eligibility norms must be reviewed and revised within <strong>2 months<\/strong> of this Order.<\/td><\/tr>\n <tr><td><strong>10(d)<\/strong><\/td><td><strong>Reciprocity Clause<\/strong> \u2014 see below.<\/td><\/tr>\n <tr><td><strong>10(e)<\/strong><\/td><td>Specifying foreign certifications \/ foreign brands \/ foreign-specific tech specs is <strong>discriminatory<\/strong>. Permissible only after <strong>written approval of Department Secretary<\/strong>.<\/td><\/tr>\n <tr><td><strong>10(f)<\/strong><\/td><td>Ministries\/Depts. with annual procurement > <strong>\u20b91000 Crore<\/strong> must publish <strong>5-year procurement projections<\/strong> on their website, updated annually.<\/td><\/tr>\n <\/tbody>\n <\/table>\n\n <div class=\"callout amber\">\n <div class=\"callout-label\">\ud83d\udd04 Para 10(d) \u2014 Reciprocity Clause<\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\u2460<\/span><span>If Indian suppliers are barred from a foreign govt.'s procurement (by registration requirements, value limits, etc.) \u2192 Nodal Ministry informs all its entities, PSEs, State Govts., and GeM for reciprocal action.<\/span><\/li>\n <li><span class=\"ico\">\u2461<\/span><span>That country's entities \u2192 <strong>barred from India's Govt. procurement<\/strong> for all related items \u2014 except those on a permitted list published by the Ministry.<\/span><\/li>\n <li><span class=\"ico\">\u2462<\/span><span>Must be included in <strong>all tenders<\/strong> by Central Govt. and <strong>all GeM purchases<\/strong> for identified items. State Govts. encouraged to adopt similarly.<\/span><\/li>\n <li><span class=\"ico\">\u2463<\/span><span>'Entity' of a country = as defined in India's <strong>FDI Policy (DPIIT)<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para10a\">\n <span class=\"section-badge red\">PARA 10A<\/span>\n <h3>Consequences for Including Discriminatory Tender Conditions<\/h3>\n <\/div>\n <div class=\"warn-card\">\n <div class=\"warn-stamp\">\u26a0\ufe0f Action Against Erring Officials<\/div>\n <h4>If bid documents contain restrictive \/ discriminatory conditions:<\/h4>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udd0d<\/span><span>Administrative Department must <strong>conduct an inquiry<\/strong> to fix individual responsibility.<\/span><\/li>\n <li><span class=\"ico\">\u2696\ufe0f<\/span><span><strong>Administrative or other action<\/strong> taken against erring officials.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udccb<\/span><span>All such actions intimated to the <strong>Standing Committee<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para11\">\n <span class=\"section-badge\">PARA 11<\/span>\n <h3>Nodal Ministry \u2014 Pre-notification Homework<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udcca<\/span><span>Before notifying LC requirements, Nodal Ministries must assess <strong>actual domestic capacity, supply base, and local competition<\/strong> for each item.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udcb0<\/span><span>Goal: ensure this Order does not create unnecessary <strong>cost increases for the Govt.<\/strong><\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para12\">\n <span class=\"section-badge\">PARA 12<\/span>\n <h3>Annual Ratcheting Up of LC Requirements<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udcc8<\/span><span>Nodal Ministries may <strong>annually review and raise<\/strong> LC requirements \u2014 provided there is adequate local competition and quality available at the higher threshold.<\/span><\/li>\n <\/ul>\n\n <hr class=\"section-divider\">\n\n <!-- \u2550\u2550\u2550 PART VI \u2550\u2550\u2550 -->\n <div class=\"chapter-heading-block\" id=\"ch6\">\n <span class=\"chapter-badge\">PART VI<\/span>\n <h2>Special Provisions<\/h2>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para13\">\n <span class=\"section-badge\">PARA 13<\/span>\n <h3>Licensed Manufacturing + Technology Transfer \u2014 LC Exemption<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udd2c<\/span><span>Nodal Ministries may <strong>exempt a supplier from minimum LC<\/strong> if: product is manufactured in India under a <strong>foreign licensor's IP<\/strong>, AND there is a <strong>technology transfer\/collaboration agreement<\/strong> with a <strong>phased roadmap for increasing LC<\/strong> over time.<\/span><\/li>\n <li><span class=\"ico\">\ud83c\udfaf<\/span><span>Rationale: Allow licensed production to begin while ensuring domestic content grows progressively \u2014 not frozen at zero.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para13a\">\n <span class=\"section-badge\">PARA 13A<\/span>\n <h3>JV Threshold \u2014 When Foreign Companies Must Partner with Indians<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udcd0<\/span><span>Applies to items with <strong>large public procurement but no sufficient local capacity notification<\/strong>. Nodal Ministry notifies an upper threshold value above which <strong>foreign companies must form a JV with an Indian company<\/strong> to participate.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udcc8<\/span><span>Such JVs can be exempted from minimum LC requirement \u2014 but the LC must increase <strong>in a phased manner<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para14\">\n <span class=\"section-badge amber\">PARA 14<\/span>\n <h3>Power to Grant Exemption or Reduce Thresholds<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udd11<\/span><span><strong>Who:<\/strong> Administrative Department (not the procuring entity) \u2014 with <strong>written Minister-in-Charge approval<\/strong> and recorded reasons.<\/span><\/li>\n <li><span class=\"ico\">a.<\/span><span>May reduce minimum LC <strong>below prescribed level<\/strong><\/span><\/li>\n <li><span class=\"ico\">b.<\/span><span>May reduce purchase preference margin <strong>below 20%<\/strong><\/span><\/li>\n <li><span class=\"ico\">c.<\/span><span>May <strong>exempt any item or supplier<\/strong> from this Order or any part<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udccb<\/span><span>Must certify that the item is <strong>not a Para 3(a) notified item<\/strong>. Copy of order to Standing Committee and Nodal Ministry.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para15\">\n <span class=\"section-badge\">PARA 15<\/span>\n <h3>Govt. Companies & Non-GFR Entities<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83c\udfe2<\/span><span>Entities not governed by GFR \u2192 their administrative Ministry\/Department must issue <strong>policy directions<\/strong> to ensure compliance with this Order.<\/span><\/li>\n <\/ul>\n\n <hr class=\"section-divider\">\n\n <!-- \u2550\u2550\u2550 PART VII \u2550\u2550\u2550 -->\n <div class=\"chapter-heading-block\" id=\"ch7\">\n <span class=\"chapter-badge\">PART VII<\/span>\n <h2>Standing Committee & Miscellaneous<\/h2>\n <\/div>\n\n <div class=\"section-heading-block\" id=\"para16\">\n <span class=\"section-badge\">PARA 16<\/span>\n <h3>Standing Committee \u2014 Composition<\/h3>\n <\/div>\n <ul class=\"sc-member-list\">\n <div class=\"sc-member\"><span class=\"sm-role sm-chairman\">CHAIRMAN<\/span><span class=\"sm-text\">Secretary, DPIIT<\/span><\/div>\n <div class=\"sc-member\"><span class=\"sm-role sm-member\">MEMBER<\/span><span class=\"sm-text\">Secretary, Dept. of Commerce<\/span><\/div>\n <div class=\"sc-member\"><span class=\"sm-role sm-member\">MEMBER<\/span><span class=\"sm-text\">Secretary, MeitY<\/span><\/div>\n <div class=\"sc-member\"><span class=\"sm-role sm-member\">MEMBER<\/span><span class=\"sm-text\">Joint Secretary (Public Procurement), Dept. of Expenditure<\/span><\/div>\n <div class=\"sc-member\"><span class=\"sm-role sm-convenor\">MEMBER-CONVENOR<\/span><span class=\"sm-text\">Joint Secretary, DPIIT<\/span><\/div>\n <div class=\"sc-member\"><span class=\"sm-role sm-member\">AS-NEEDED<\/span><span class=\"sm-text\">Secretary of concerned Dept. (for item-specific issues); Technical experts co-opted by Chairman as needed<\/span><\/div>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para17\">\n <span class=\"section-badge\">PARA 17<\/span>\n <h3>Standing Committee \u2014 Functions (meets \u2265 once every 6 months)<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">a.<\/span><span>Oversee implementation; recommend to Nodal Ministries and procuring entities.<\/span><\/li>\n <li><span class=\"ico\">b.<\/span><span>Annual assessment + periodic monitoring of compliance.<\/span><\/li>\n <li><span class=\"ico\">c.<\/span><span>Identify Nodal Ministries and allocate items for LC notifications.<\/span><\/li>\n <li><span class=\"ico\">d.<\/span><span>Call for compliance details and returns from any entity.<\/span><\/li>\n <li><span class=\"ico\">e.<\/span><span>Flag and suggest remedies where implementation leads to <strong>restrictive practices, cartelization, or cost inflation<\/strong>.<\/span><\/li>\n <li><span class=\"ico\">f.<\/span><span>Examine Para 13 (technology transfer) cases to verify <strong>progressive indigenization<\/strong> is actually happening.<\/span><\/li>\n <li><span class=\"ico\">g.<\/span><span>Consider any other issue under this Order.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para18\">\n <span class=\"section-badge\">PARA 18<\/span>\n <h3>Removal of Difficulties<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83d\udd27<\/span><span>Ministries\/Departments and Boards of Directors of Govt. companies may issue <strong>clarifications<\/strong> to resolve implementation difficulties.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para19\">\n <span class=\"section-badge\">PARA 19<\/span>\n <h3>Existing Policies \u2014 Which Prevails?<\/h3>\n <\/div>\n <ul class=\"icon-list\">\n <li><span class=\"ico\">\ud83e\udd47<\/span><span>A Ministry's own local content policy <strong>approved by Cabinet after 1 Jan 2015<\/strong> \u2192 <strong>overrides<\/strong> this Order.<\/span><\/li>\n <li><span class=\"ico\">\ud83d\udd04<\/span><span>All other existing local content orders \u2192 must be brought in line with this Order <strong>within 2 months<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"section-heading-block\" id=\"para20\">\n <span class=\"section-badge\">PARA 20<\/span>\n <h3>Transitional Provision<\/h3>\n <\/div>\n <div class=\"callout amber\">\n <div class=\"callout-label\">\ud83d\udccc Prospective Only<\/div>\n <p>This Order applies <strong>only to tenders issued on or after its date<\/strong>. Any tender notice issued before this Order is unaffected \u2014 even if the contract is signed later.<\/p>\n <\/div>\n\n <\/main>\n<\/div>\n\n<script>\n const trackables = document.querySelectorAll('[id]');\n const tocLinks = document.querySelectorAll('.toc-list a, .toc-sub a');\n const tocCard = document.querySelector('.toc-card');\n window.addEventListener('scroll', () => {\n let cur = '';\n trackables.forEach(el => { if (window.scrollY >= el.offsetTop - 100) cur = el.id; });\n tocLinks.forEach(a => {\n const active = a.getAttribute('href') === '#' + cur;\n a.classList.toggle('active', active);\n if (active && tocCard) {\n const lt = a.offsetTop, ch = tocCard.clientHeight, lh = a.clientHeight;\n if (lt < tocCard.scrollTop || lt + lh > tocCard.scrollTop + ch)\n tocCard.scrollTo({ top: lt - ch\/2 + lh\/2, behavior: 'smooth' });\n }\n });\n });\n<\/script>\n<\/body>\n<\/html>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Public Procurement (Preference to Make in India) Order 2017 \u2014 Study Notes \ud83c\uddee\ud83c\uddf3 DPIIT \u00b7 Ministry of Commerce & Industry 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