Policy mandates to provide preference to DMI&SP in Govt procurement

In recent past, Indian steel sector had been severely impacted by the onslaught of cheap imports from the steel majors, resulting in imposition of several trade remedial measures by the Government of India. Over time, the impact of dumping has been contained to a certain extent, however in coming future, India, with its emphasis on manufacturing through its “Make in India” programme and the planned spend in Infrastructure sector, expansion of railway network, national highways, ports, airports and development of domestic shipbuilding industry etc, is expected to create significant demand for steel in the country. A significant spend is expected on iron and steel products occurring in the Public Sector and Government projects and hence, it is imperative that most, if not all of this planned expenditure is done with indigenous steel. The policy mandates to provide preference to Domestically Manufactured Iron & Steel Products (DMI&SP), in Government Procurement for its own use and not with a view to Commercial resale or with a view to use in the production of goods for commercial sale.The policy is applicable to all such projects and procurements, where the aggregated estimated value of the “iron & steel products” is either INR 50 crores or more. The policy shall come into force from the date of its publication in the Gazette of India and shall be in force for a period of ten (10) years thereafter.