Notifications for Electronic Products under Public Procurement Order 2017

Public Procurement (Preference to Make in India) Order 2017 (PPO 2017) for Electronic Products

The Government has issued Public Procurement (Preference to Make in India) Order 2017 vide the Department of Industrial Policy and Promotion (DIPP) Notification No.P-45021/2/2017-B.E.-II dated 15.06.2017 to encourage ‘Make in India’ and to promote manufacturing and production of goods and services in India with a view to enhancing income and employment. This Order is issued pursuant to Rule 153 (iii) of the General Financial Rules 2017. The salient features of the aforesaid Order are as under:

  • The Order is applicable for procurement by Ministry/ Department/ attached/ subordinate office of, or autonomous body controlled by, the Government of India and includes Government companies as defined in the Companies Act.
  • In procurement of goods in respect of which the Nodal Ministry has communicated that there is sufficient local capacity and local competition, and where the estimated value of procurement is Rs. 50 lakhs or less, only local suppliers shall be eligible.
  • If the estimated value of procurement of such goods is more than Rs. 50 lakhs, the provisions of sub-paragraph 3(b) or (c), of the PPO 2007 as the case may be, shall apply.
  • The margin of purchase preference shall be 20%. ‘margin of purchase preference’ means the maximum extent to which the price quoted by a local supplier may be above the L1 for the purpose of purchase preference.
  • Ministry of Electronics and Information Technology is the Nodal Ministry for implementation of the Electronic Products Notifications issued in furtherance of PPO 2017.

MeitY has also deployed an online portal to monitor the procurement reports of Ministries/ Departments and their Agencies for compliance with the aforesaid Order for procurement of electronic products.

Online Monitoring System

The products notified for providing preference under the PPO 2107 by MeitY (vide Notification No. 33(1)/2017-IPHW dated 14.09.2017) are as follows:

1. Desktop PCs

2. Laptop PCs

3. Tablet PCs

4. Dot Matrix Printers

5. Contact Smart Cards and Contactless Smart Cards

6. LED Products

7. Biometric Access Control/Authentication Devices

8. Biometric Finger Print Sensors

9. Biometric Iris Sensors and

10. Servers

Government E-Market Place (GeM) Portal and NICSI, the two major procurement agencies of Government of India, are expected to ensure compliance of the Electronic Products Notification in their procurement. In case of a complaint STQC will be the agency to look into the domestic value addition.

All Ministries/ Departments/ organizations under their Administrative control shall insert the important clauses of PPO 2017 in their RFPs/ tenders to conform the PPO 2017 for procurement of notified electronic products.

For any complaints/ query, pleases send your queries to Mr. Mukul Kumar Yadav (email:mukul[dot]yadav[at]meity[dot]gov[dot]in)

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Archive - Policy for providing preference to domestically manufactured electronic products