Exemption for Medical items manufactured outside India or having Local Content less than 20% from applicability of Public Procurement Policy – Railways
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
New Delhi, dated 03.12.2020
Sub: Exemption for Medical items manufactured outside India or having Local Content less than 20% from applicability of Public Procurement Policy – regarding.
Ref.: Northern Railway letters No.106-S/Medical Procurement/SPS dated 31.08.2020 and 19.10.2020 (copies enclosed)
1. The issues raised in letters of NR under reference were forwarded to DPIIT. DPIIT has informed that, Department of Pharmaceuticals and Ministry of Health and Family Welfare being the nodal Ministry for Pharmaceuticals, Medical Devices and Equipment, the reference has been forwarded to them for comments.
2. However, DPIIT has requested to indicate details of the items which are manufactured in India (with imported raw material) but have local content less than 20% as has been stated in the request. It is important because it has been considered that all the items, which are manufactured in the country, will have minimum 20% local content since manufacturing cost, marketing cost, profits etc. are part of local content as per PPP-MII Order definition.
3. It has also been stated by DPIIT that procurement of imported items through Indian agents/ tenders tantamount to indirect violation of GFR 161(iv) and hence not recommended and advised to get specific relaxation for procurement of such items from Secretary Coordination Cabinet Secretariat as per laid down rules and regulations. In this regard, attention is also invited by DPIIT to, it is also pertinent to mention here that in the meeting held on 10.11.2020, Secretary (Coordination), Cabinet Secretariat directed that the purpose of seeking such relaxation is to achieve indigenization of these items, which are presently not being manufactured in the country. It is felt that the above objective is defeated in case the subject relaxation is granted.
4. Notwithstanding above, DPIIT has also advised to exercise powers conferred to them Railway Board as administrative ministry under Para 14 of the Order with the approval of Minister-in-charge to seek relaxation in any particular procurement, if required.
In view of the above, please provide the information of the items as per Para 2 above. You are also advised to take further necessary action as per existing provisions.
Deputy Director Railway Stores(G)