Procedure for implementation of PMA in government procurement through DGS&D finalised

Monday, October 07, 2013: Department of Commerce, Government of India, had constituted a committee under the chairmanship of Rita Teaotia, additional secretary, Department of Telecommunication, for the implementation of the policy for providing preference to domestically manufactured electronic products in the procurements carried out by DGS&D. The committee constituted vide its order dated Feb 28, 2013 was mandated to recommend the steps and methods of operationalisation of the said policy in DGS&D for the public procurement of goods under DGS&D rate contracts.

The committee included representatives of Department of Electronics and IT, Department of Telecommunications, Department of Commerce and DGS&D. DGS&D is presently concluding annual rate contracts through on-line open competitive bidding amongst registered suppliers for variety of common user Goods including Electronic/IT/Telecom/Solar sector Goods, list of which was perused by the committee. Except for specific requests/indents, DGS&D does not procure the goods directly and, instead, user government departments including defence, procure their goods directly either by way of tendering or by on-line supply orders against DGS&D rate contracts as per GFR provisions.

The robustness in DGS&D procedures including complete transparency in concluding rate contracts are well established and time-tested and are available on its website in public domain. The committee has since finalised its report on September 2, 2013. The committee report makes very clear recommendations with regard to the procedure for implementation of modalities for the implementation of the policy for providing preference to domestic manufacturers of electronic goods in the process of rate contract finalization of goods by DGS&D. The main recommendations of the Committee are as follows.

All items for which notification has been issued under the policy for providing preference to domestic manufacturers in government procurement vide the policy notification dated 10.2.2012 will be covered under the said procedure of the DGS&D. DGS&D as nodal agency should promote the policy for providing preference to domestically manufactured electronic products based on notifications issued under the policy by DeitY, DoT and any other department in the public procurement by government and its agencies.

DGS&D shall indicate in their rate contracts, the requirement of domestic value addition prescribed under the product notifications issued under the policy/guidelines for the item to be compliant with the Policy for the guidance of purchasers for each product. DGS&D shall also furnish the domestic value addition as provided by the manufacturer for each product and model.

- Advertisement -

DGS&D shall continue concluding their rate contracts with suppliers as per existing procedures. The responsibility shall lie with the government user departments and agencies under their control to make procurements in compliance with the criteria prescribed in the notified policies & guidelines. DGS&D shall obtain necessary affidavit regarding domestic value addition in prescribed form I of the guidelines dated 12.06.2013 and incorporate the domestic value addition in their existing or future rate contracts for each notified product, model wise. The vendors shall have the option to upgrade, but not downgrade, the domestic value addition content of existing rate contracts through affidavit in prescribed Form I. DGS&D shall update the rate contracts accordingly without affecting the price. In the event of submission of upgraded Form I, all supplies made after the date of such submission shall be with upgraded domestic value addition only.

The relevant date for compliance to value addition norm by domestic manufacturers shall be the date of the supply/purchase order by the requisitioning department/purchaser/indenter. Pending final disposal of any complaint against the self certification for domestic value addition provided under the policy, the process for awarding the rate contracts/continuation of existing rate contracts shall not be put on hold. DGS&D should ensure through their Tender conditions that domestically manufactured electronic products are encouraged and are not subjected to restrictive product specifications or mandatory requirement of prior experience.

They may also rationally identify and evaluate predatory pricing by any bidder. However, DGS&D may continue to incorporate such stipulations as may be considered necessary to satisfy the security, manufacturing capability and product quality of the manufacturers. DGS&D holds regular Consultative Committee Meetings (CCMs) for framing the technical specifications and Eligibility Criteria for various products before inviting bids for rate contracts. In addition to their existing practice of inviting all stakeholders including Industry, Trade associations and Government user departments, DGS&D should also invariably invite representatives of DoT and DeitY in such CCM meetings for products notified under the policy.

- Advertisement -
Loading form…

Industry's Buzz

thyssenkrupp

Thyssenkrupp Automotive Launches Pune GCC

0
The German mobility giant expands its Indian engineering footprint with a new hub dedicated to software-defined vehicles and advanced chassis systems. Thyssenkrupp Automotive Technology has...

Micron Introduces Global Profit-Linked Bonus Scheme from FY27

0
The US memory-chip giant acts following trade union pressure in Taiwan to share record gains from the artificial intelligence boom.  US memory-chip manufacturer Micron Technology...
FICCI

FICCI Identifies Electronics as a Priority for India–Germany Cooperation

0
FICCI identifies electronics and advanced manufacturing as key areas for German investment in India, with potential for stronger manufacturing partnerships and integrated supply chains...
APT Electronics

APT Electronics Outsources Two Automotive Vision Operations to Geely

0
APT Electronics plans to extend its automotive vision supply agreements with Geely through 2029 and outsource operations at two subsidiaries to improve efficiency, product...

US Allocates $389M in R&D Grants for Power Semiconductors

0
Federal funding targets four technology firms to advance next-generation semiconductor materials and fusion power applications. The US Commerce Department has announced plans to award $389...

Learn From Leaders

Pravin Patel, Founder and Chairman, Brio Agri, India

“Our goal is not to replace farmers, but to empower them with better tools,...

0
In an exclusive interaction with EFY's Saba Aafreen, Pravin Patel, Founder and Chairman of Brio Agri, discusses building hydroponics and controlled-environment agriculture in India,...

Does India’s Chip Packaging Growth Need Local Materials At Scale?

0
What will it take for specialised semiconductor materials manufacturing to grow in India? Packaging volumes will be a key factor as OSAT facilities move...
Ronak Kumar Samantray, Founder, TM2Space Technologies Pvt Ltd.

“Our goal is to build data centres in space.” – Ronak Kumar Samantray, TM2Space

0
A space startup aims to build orbital data centres, letting users run AI models and store data on satellites while also supplying satellite hardware...

India’s Photonics Puzzle Is Finally Coming Together 

0
Can India turn its scattered photonics capabilities into a stronger industry? A new association aims to connect the ecosystem and strengthen the domestic value...
Jin Bains, CEO, Mini-Circuits

Mini-Circuits CEO Jin Bains on Navigating High-Frequency Component SWaP-C Constraints, Emerging Markets, and Career...

0
In this exclusive, Jin Bains, Chief Executive Officer (CEO) of Mini-Circuits, explains in a conversation with Dilin Anand of EFY about areas of emerging...

Startups

Pranay Rebala, Vice President of Product, BluJ Aerospace

“Rather Than Waiting For The Technology To Mature, We Are Ready For The Next...

0
Can battery-electric and hydrogen propulsion coexist in future VTOL aircraft? BluJ Aerospace sees complementary roles for both, with batteries powering shorter-range flights and hydrogen...

UST Selects 19 Startups for D3 Startup Challenge 2026 in Bengaluru

0
The programme is designed to identify technologies that address business challenges, assess their practical applications and determine their potential to scale UST, an AI and...

Compcarta Reduces The Cost And Complexity Of End-To-End Chip Design

0
Building a chip should not require assembling an entire design ecosystem. A Noida-based startup is developing a browser-based EDA platform that aims to reduce...

Aquaexchange Brings Monitoring And Automation To Shrimp Farming

0
The startup has developed an AI- and IoT-enabled platform that helps shrimp farmers manage farms, access financing, monitor operations, and connect with markets. The startup...

Drone-Like Aircraft For Logistics From BluJ Aerospace

0
Hyderabad-based BluJ Aerospace is developing indigenous electric and hydrogen-powered vertical take-off and landing (VTOL) aircraft for remote cargo transport. BluJ Aerospace, a Hyderabad-based aerospace startup...