The Government had approved a Policy for providing preference to domestically manufactured iron & steel products in government procurement (DMI&SP Policy) and notified the same on 8th May, 2017. The policy has come into force from the date of its publication in the Gazette of India. The policy mandates to provide preference to Domestically Manufactured Iron & Steel Products (DMI&SP), in Government Procurement in which a minimum value addition of 15% have taken place domestically. Each Ministry or Department of Government and all agencies/entities under their administrative control will be under the purview of the DMI&SP policy.
The policy is applicable to supply of iron & steel products having aggregated estimate value of INR 50 Crores or more. The policy has provisions for waivers to all such procurements, where specific grades of steel are not manufactured in the country, or the quantities as per the demand of the project cannot be met through domestic sources.
A Standing Committee headed by Secretary (Steel) has been constituted on 14.06.2017 under clause 4 of the DMI&SP Policy to issue clarification sought by stakeholders. Recently, Ministry of Railways, ONGC Limited, Indian Pipe Manufacturers Association (IPMA) and Seamless Tube Manufacturers Association of India (STMAI) have sought certain clarifications on the DMI&SP Policy. Accordingly, the Standing Committee held its first meeting on 21.06.2017 and clarified the issues raised by these 4 organizations. The points raised and clarifications are enclosed.