Annexure 28 — GOODS_MANUAL

GOODS_MANUAL

Mathematically, Local content = (Sale price - Value of imported content) * 100/ Sale price Where, “Sale price” means price excluding net domestic indirect taxes and “Value of imported content” means price of imported content inclusive of all customs duties
Question 2. How to calculate Local Content in bids involving supply of multiple items from single bidder? Answer: In case of bids requiring supply of multiple items (say “X1”, “X2” and “X3”) by a single bidder, the local content in the bid shall be
Local content = ((Sale price of “X1” - Value of imported content in “X1”) + (Sale price of “X2” - Value of imported content in “X2”) + (Sale price of “X3” - Value of imported content in “X3”)) * 100/ (Sale price of “X1” + Sale price of “X2” + Sale price of “X3”)
Question 3. How to obtain Make in India “MII” certificate? Answer: No such certificate issued by Government of India. As per para 9
(a) of PPP-MII Order, 2017 (as amended on 16.09.2020), the bidders are required to self certify the local content in their product for purchase value less than Rs.10 crore. For purchases more than Rs.10 crore, as per para 9
(b) of PPP-MII Order, 2017, a certificate from the statutory auditor or cost auditor of the company (in the case of companies) or from a practicing cost accountant or practicing chartered accountant (in respect of suppliers other than companies) is required to be submitted.
Question 4. What is the meaning of class-I local supplier, class-II local supplier and non-local supplier? Answer: PPP-MII Order, 2017 (as amended on 16.09.2020) classifies the suppliers into following 3 categories:
a. ‘Class-I local supplier’ – Suppliers offering items with equal to or more than 50% local content b. ‘Class-II local supplier’ - Suppliers offering items with equal to or more than 20% but less than 50% local content c. ‘Non-local supplier’ - Suppliers offering items with Less than 20% local content
Nodal Ministries/ Departments are authorized to notify a higher minimum local content requirement for any item, i.e., higher than 50/20%, if they deem fit
5. Details of product categories for which nodal Ministry have been notified by DPIIT for 2017 may be provided? PPPMII, Answer: DPIIT has notified 20 nodal Ministries for different product categories. The details of such product categories and associated Ministry/ Department are available on DPIIT website. Refer link: https://dpiit.gov.in/sites/default/files/Approved%20product%20category%20list %20as%20per%2012th%20SCM.pdf
Question 6. Can an item be procured from non-local suppliers, if there are no Class-I/ Class-II local suppliers in the country.
Answer: Non-local suppliers can only participate in global tender enquiry. Against domestic/ national tenders, only Class-I and Class-II local suppliers can participate in the bidding process. Hence, in case item is not available locally from Class-I/ Class-II local suppliers, global tender enquiry may be floated for procuring item after taking approval of competent authority, as notified by Department of Expenditure under Rule 161
(iv) of GFR.
Question 7. Are provisions of PPP-MII Order applicable only in procurement of the items for which nodal Ministries have been notified and the items for which nodal ministries have issued local content notification?
Annexure 28: FAQs About PPP-MII Order, 2017 Question 1. How to calculate Local Content? (Refer para 1.11.3-20) Answer: Para 2 of the PPP-MII Order, 2017 (as amended on 16.09.2020) defines local content as Local content’ means the amount of value added in India which shall, unless otherwise prescribed by the Nodal Ministry, be the total value of the item procured (excluding net domestic indirect taxes) minus the value of imported content in the item (including all customs duties) as a proportion of the total value, in percent.
Answer: No. The provisions of PPP-MII Order are applicable on procurement of all the items by Central Government procurement entities. For the items, for which nodal ministries have not been designated and the items for which nodal ministries have not issued minimum local content notification, the default provision of PPP- MII Order shall apply.
Question 8. Will the cost of transportation, insurance, installation, commissioning, training and after sales service support like AMC/CMC etc. will be considered as a part of local content?
Answer: The cost of transportation, insurance, installation, commissioning, training and after sales service support like AMC/CMC etc. will not be taken into account for calculating local content in any item. DPIIT OM No.P-45021/102/2019-BE-II- Part(1) (E-50310) dated 04.03.2021 refers, available on DPIIT Website. Refer link https://dpiit.gov.in/sites/default/files/Letter%20to%20All%20Ministries030420 21_clarification.pdf
Question 9. Can administrative Ministries grant exemption/ relaxation for procurement of imported items with the approval of Hon’ble Minister In-charge under Para 14 of PPP-MII Order?
Answer: Procurement of imported item is governed by Rule 161
(iv) of GFR. Hon’ble Minister In-charge of administrative Ministry is not the appropriate authority for any exemption/waiver in GFR. As such, procuring entities are advised to follow the procedures as prescribed in GFR Rule 161
(iv) for procurement of imported items. In this regard, minutes of 14th Standing Committee Meeting held on 20.09.2022 issued by DPIIT, refers. (Agenda point Number 5.)
Question 10. Can administrative Ministry/Departments give exemption for wide range of product categories for an extended period of time under Para 14 of PPP- MII Order with the approval of Hon’ble Minister In- charge?
Answer: The administrative Ministries/ Departments shall grant only tender specific exemptions under Para 14 of the Order. Exemptions granted shall remain valid for a period of maximum 01 year only. If the same items are procured again within the aforesaid period of 01year, fresh approval of Minister-incharge is not required. If any administrative Ministry/ Department intends to grant exemption beyond a period of 01 year, it shall do so only with prior written concurrence of concerned nodal Ministry. In this regard, minutes of 14th Standing Committee Meeting held on 20.09.2022 issued by DPIIT, refers. (Agenda point Number 5.)
11. How do I apply for DPIIT registration under Rule 144
(xi) GFR for entities having beneficial in land border sharing countries?
Answer: The application format for registration of bidders under Rule 144
(xi) GFR is available on DPIIT website. Refer link: https://dpiit.gov.in/sites/default/files/Revised-Format-Bidders-31March2021.pdf. Applicants are required to submit one hard copy in the prescribed format along with soft copy (pdf), as detailed in the covering letter of the format. The applicant shall be asked to submit additional hard copies, if required at the later stage.
Question 12. What will be the category of the local suppliers having exactly 20% and 50% local content? Answer: Vide its para 5, the Public Procurement (Preference to Make in India) Order, 2017 dated 16.09.2020 stipulates the minimum local content requirement as under:
“The ‘local content’ requirement to categorize a supplier as ‘Class-I local supplier’ is minimum 50%. For ‘Class-II local supplier,’ the ‘local content’ requirement is minimum 20%. Nodal Ministry/Department may prescribe only a higher percentage of minimum local content requirement to categorize a supplier as ‘Class-I local supplier’/’Class-II local supplier.’ For the items, for which Nodal Ministry/Department has not prescribed higher minimum local content notification under the Order, it shall be 50% and 20% for ‘Class-I local supplier’/” Class-II local supplier’ respectively.”
Accordingly, the local suppliers having exactly 20% and 50% local content will be categorized as "ClassII Local Supplier" and ‘Class-I Local Supplier’ respectively.
Question 13. Whether a Central Government/CPSE Buyer can take cognizance of open undertakings/ futuristic declarations and treat bidder as Class I/ Class II local supplier through the present level of local content of the bidder happens to be below 50%/ 20% respectively?
Answer: Detailed Procedure for Verification of local content declared by suppliers /vendors is elaborated on clause 9 of PPP-MII Order, 2017 dated 16.09.2020 and as per the Order, futuristic declarations regarding local content is not allowed.

GOODS_MANUAL

Mathematically, Local content = (Sale price - Value of imported content) * 100/ Sale price Where, “Sale price” means price excluding net domestic indirect taxes and “Value of imported content” means price of imported content inclusive of all customs duties
Question 2. How to calculate Local Content in bids involving supply of multiple items from single bidder? Answer: In case of bids requiring supply of multiple items (say “X1”, “X2” and “X3”) by a single bidder, the local content in the bid shall be
Local content = ((Sale price of “X1” - Value of imported content in “X1”) + (Sale price of “X2” - Value of imported content in “X2”) + (Sale price of “X3” - Value of imported content in “X3”)) * 100/ (Sale price of “X1” + Sale price of “X2” + Sale price of “X3”)
Question 3. How to obtain Make in India “MII” certificate? Answer: No such certificate issued by Government of India. As per para 9
(a) of PPP-MII Order, 2017 (as amended on 16.09.2020), the bidders are required to self certify the local content in their product for purchase value less than Rs.10 crore. For purchases more than Rs.10 crore, as per para 9
(b) of PPP-MII Order, 2017, a certificate from the statutory auditor or cost auditor of the company (in the case of companies) or from a practicing cost accountant or practicing chartered accountant (in respect of suppliers other than companies) is required to be submitted.
Question 4. What is the meaning of class-I local supplier, class-II local supplier and non-local supplier? Answer: PPP-MII Order, 2017 (as amended on 16.09.2020) classifies the suppliers into following 3 categories:
a. ‘Class-I local supplier’ – Suppliers offering items with equal to or more than 50% local content b. ‘Class-II local supplier’ - Suppliers offering items with equal to or more than 20% but less than 50% local content c. ‘Non-local supplier’ - Suppliers offering items with Less than 20% local content
Nodal Ministries/ Departments are authorized to notify a higher minimum local content requirement for any item, i.e., higher than 50/20%, if they deem fit
5. Details of product categories for which nodal Ministry have been notified by DPIIT for 2017 may be provided? PPPMII, Answer: DPIIT has notified 20 nodal Ministries for different product categories. The details of such product categories and associated Ministry/ Department are available on DPIIT website. Refer link: https://dpiit.gov.in/sites/default/files/Approved%20product%20category%20list %20as%20per%2012th%20SCM.pdf
Question 6. Can an item be procured from non-local suppliers, if there are no Class-I/ Class-II local suppliers in the country.
Answer: Non-local suppliers can only participate in global tender enquiry. Against domestic/ national tenders, only Class-I and Class-II local suppliers can participate in the bidding process. Hence, in case item is not available locally from Class-I/ Class-II local suppliers, global tender enquiry may be floated for procuring item after taking approval of competent authority, as notified by Department of Expenditure under Rule 161
(iv) of GFR.
Question 7. Are provisions of PPP-MII Order applicable only in procurement of the items for which nodal Ministries have been notified and the items for which nodal ministries have issued local content notification?
Annexure 28: FAQs About PPP-MII Order, 2017 Question 1. How to calculate Local Content? (Refer para 1.11.3-20) Answer: Para 2 of the PPP-MII Order, 2017 (as amended on 16.09.2020) defines local content as Local content’ means the amount of value added in India which shall, unless otherwise prescribed by the Nodal Ministry, be the total value of the item procured (excluding net domestic indirect taxes) minus the value of imported content in the item (including all customs duties) as a proportion of the total value, in percent.
Answer: No. The provisions of PPP-MII Order are applicable on procurement of all the items by Central Government procurement entities. For the items, for which nodal ministries have not been designated and the items for which nodal ministries have not issued minimum local content notification, the default provision of PPP- MII Order shall apply.
Question 8. Will the cost of transportation, insurance, installation, commissioning, training and after sales service support like AMC/CMC etc. will be considered as a part of local content?
Answer: The cost of transportation, insurance, installation, commissioning, training and after sales service support like AMC/CMC etc. will not be taken into account for calculating local content in any item. DPIIT OM No.P-45021/102/2019-BE-II- Part(1) (E-50310) dated 04.03.2021 refers, available on DPIIT Website. Refer link https://dpiit.gov.in/sites/default/files/Letter%20to%20All%20Ministries030420 21_clarification.pdf
Question 9. Can administrative Ministries grant exemption/ relaxation for procurement of imported items with the approval of Hon’ble Minister In-charge under Para 14 of PPP-MII Order?
Answer: Procurement of imported item is governed by Rule 161
(iv) of GFR. Hon’ble Minister In-charge of administrative Ministry is not the appropriate authority for any exemption/waiver in GFR. As such, procuring entities are advised to follow the procedures as prescribed in GFR Rule 161
(iv) for procurement of imported items. In this regard, minutes of 14th Standing Committee Meeting held on 20.09.2022 issued by DPIIT, refers. (Agenda point Number 5.)
Question 10. Can administrative Ministry/Departments give exemption for wide range of product categories for an extended period of time under Para 14 of PPP- MII Order with the approval of Hon’ble Minister In- charge?
Answer: The administrative Ministries/ Departments shall grant only tender specific exemptions under Para 14 of the Order. Exemptions granted shall remain valid for a period of maximum 01 year only. If the same items are procured again within the aforesaid period of 01year, fresh approval of Minister-incharge is not required. If any administrative Ministry/ Department intends to grant exemption beyond a period of 01 year, it shall do so only with prior written concurrence of concerned nodal Ministry. In this regard, minutes of 14th Standing Committee Meeting held on 20.09.2022 issued by DPIIT, refers. (Agenda point Number 5.)
11. How do I apply for DPIIT registration under Rule 144
(xi) GFR for entities having beneficial in land border sharing countries?
Answer: The application format for registration of bidders under Rule 144
(xi) GFR is available on DPIIT website. Refer link: https://dpiit.gov.in/sites/default/files/Revised-Format-Bidders-31March2021.pdf. Applicants are required to submit one hard copy in the prescribed format along with soft copy (pdf), as detailed in the covering letter of the format. The applicant shall be asked to submit additional hard copies, if required at the later stage.
Question 12. What will be the category of the local suppliers having exactly 20% and 50% local content? Answer: Vide its para 5, the Public Procurement (Preference to Make in India) Order, 2017 dated 16.09.2020 stipulates the minimum local content requirement as under:
“The ‘local content’ requirement to categorize a supplier as ‘Class-I local supplier’ is minimum 50%. For ‘Class-II local supplier,’ the ‘local content’ requirement is minimum 20%. Nodal Ministry/Department may prescribe only a higher percentage of minimum local content requirement to categorize a supplier as ‘Class-I local supplier’/’Class-II local supplier.’ For the items, for which Nodal Ministry/Department has not prescribed higher minimum local content notification under the Order, it shall be 50% and 20% for ‘Class-I local supplier’/” Class-II local supplier’ respectively.”
Accordingly, the local suppliers having exactly 20% and 50% local content will be categorized as "ClassII Local Supplier" and ‘Class-I Local Supplier’ respectively.
Question 13. Whether a Central Government/CPSE Buyer can take cognizance of open undertakings/ futuristic declarations and treat bidder as Class I/ Class II local supplier through the present level of local content of the bidder happens to be below 50%/ 20% respectively?
Answer: Detailed Procedure for Verification of local content declared by suppliers /vendors is elaborated on clause 9 of PPP-MII Order, 2017 dated 16.09.2020 and as per the Order, futuristic declarations regarding local content is not allowed.

Annexure 28 — GOODS_MANUAL

Original Rule Text

Annexure 28 — GOODS_MANUAL

Original Rule Text