Giving a further push to ‘Make-In-India’ initiative, the government has approved the domestic purchase preference policy for Public Sector Undertakings (PSUs) oil companies to boost local manufacturing. The Policy is expected to encourage suppliers and service providers to progressively adopt 'Make in India' practices and add value to their goods and services within the country.
Under the five-year policy, the purchase preference will be linked to local content (LC) and targets of LC will be stipulated for certain oil and gas business activities. The manufacturers or service providers who meet the local content targets and whose quoted price is within 10 per cent of the lowest valid price bid would be eligible for purchase preference for a stipulated portion of the purchase order on matching such price. Also, a steering committee will be constituted to oversee implementation of the policy, carry out annual review and recommend continuation of the policy from year to year basis.
The Policy will apply to all the Public Sector Enterprises and their wholly owned subsidiaries, Joint Ventures that have 51% or more equity by one or more Public Sector Enterprises, attached and subordinate offices of Ministry of Petroleum and Natural Gas.