RBI pushes ‘Make in India’ for currency security features

RBI cancelled two tenders issued earlier for supply of security features and fibre for currency notes in order to incorporate 'Make in India' as an essential requirement

In a big 'Make in India' push, the Reserve Bank on came out with fresh tender for currency security features, mandating that the supplier set up the manufacturing unit in the country within two years and gradually increase the local content.

RBI cancelled two tenders issued earlier for supply of security features and fibre for currency notes in order to incorporate 'Make in India' as an essential requirement.

The bid document is for supply of different types of security threads, colourshifting ink, foil patch, security fibre, paper based taggant, ink based taggant, advanced watermark and micro perforation.

"Bidder may note that their acceptance of the 'Make in India'...is a mandatory requirement for considering the bidder eligible," RBI said while inviting pre-qualification bids for supply of security features for Indian banknotes.

As per the latest tender document for security features for banknotes, the successful bidder will be required to set up the "manufacturing facility" in India within two years from the date of signing of contract and increase the local content in planned manner from the third year. It will also have to increase the domestic value addition to 35 per cent in the third year, 40 per cent in the fourth year and 50 per cent or more in the fifth year, reports PTI.

"The bidder may set up his manufacturing unit in India through a subsidiary or under license or through transfer of technology to any local manufacturer permitted by the purchaser," said the prequalification bid document.

The local suppliers are exempted from experience and past performance criteria, and average annual turnover requirement.