Para 1.11.5 — GOODS_MANUAL

GOODS_MANUAL

1.11.5 Support to Start-up Enterprises 1. Definition of Start-up Enterprises: a) As defined by DPIIT, an entity shall be considered as a 'Start-up':
Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, 2019 1. Background: DMI&SP policy provides a preference for Domestically Manufactured Iron and Steel Products (DMl & SP) in Government procurement. By promoting domestically manufactured iron and steel products as well as capital goods used for manufacturing iron and steel products, the Policy contributes to the growth of the Indian iron and steel industry. It was first notified in May 2017, revised in May 2019, and further amended in December 2020. The Ministry of Steel notified on March 8, 2024, of the extension of this Policy till November 2024.
i) Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India, ii) Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees, iii) The entity works towards innovation, development, or improvement of products, processes, or services, as well as a scalable business model with a high potential for employment generation or wealth creation. b)
Provided that an entity formed by splitting up or reconstructing an existing business shall not be considered a ‘Start-up.’ c) Provided further that in order to obtain benefits a Startup so identified under the above definition shall be required to be recognized as Startup by DPIIT.
2. Support to Start-ups: The Government of India has ordered the following support to Startups (as defined by the Department of Promotion of Industrial and Internal Trade - DPIIT).
a) Exemption from submission of Bid Security: Such Start-ups shall be exempted from payment of Earnest Money. b) 36Relaxation in Prior Turnover and Experience: The Procuring Entity reserves its right to relax the condition of prior turnover and prior experience for start-up enterprises recognized by the Department for Industry & Internal Trade (DPIIT), subject to meeting quality & technical specifications. Startups may be MSMEs or otherwise. Such relaxation can be provided in the case of procurement of works as well. It is further clarified that such relaxation is not optional but normally has to be ensured, except in case of procurement of items related to public safety, health, critical security operations and equipment, etc) where adequate justification exists for the Procuring Entity not to relax such criteria37. The decision of the Procuring Entity in this regard shall be final. Please also refer to para 5.1.3-7-c) and 7.4.2-1-b) (Rule 173
(i) of GFR 2017).
2. Applicability: a) Iron & Steel Products: i) The Policy applies to the government procurement of iron & steel products (listed in Appendix A of the Policy, produced in compliance with prescribed quality standards) by every Ministry or Department of Government and all agencies/ entities under their administrative control and to projects funded by these agencies. All Central Sector Schemes (CS)/Centrally Sponsored Schemes (CSS) for which
States and Local Bodies make procurement would come within the purview of this Policy if the Government of India fully / partly funds that project / scheme. However, this Policy shall not apply to purchasing iron & steel products with a view to commercial resale or to use in producing goods for commercial sale. The Policy also applies to private agencies' purchase of iron & steel products to fulfil an EPC contract and/ or any other requirement of the Ministry or Department of Government or their PSEs. However, this Policy shall not apply to purchasing iron & steel products with a view to commercial resale or to use in producing goods for commercial sale. ii) The Policy shall apply to projects where the procurement value of iron and steel products exceeds Rs. 5 lakhs. The Policy shall also be applicable for other procurements (non-project) where the annual procurement value of iron and steel products for that Government organization is more than Rs. 5 lakhs. However, it shall be ensured by procuring entities that procurement is not split to avoid the provisions of this Policy.
3. Waivers: Waivers shall be granted by the Ministry of Steel to all such government procurements subject to the conditions below. The exclusion requests shall be submitted to the Standing Committee along with sufficient proof of unavailability of domestically manufactured iron & steel products:
a) Where specific grades of steel are not manufactured in the country or b) Where the quantities as per the demand of the project cannot be met through domestic sources
b) Capital Goods for Manufacturing Iron & Steel Products i) For government procurement of capital goods for manufacturing iron & steel products listed in Appendix B of the Policy (produced in compliance with prescribed quality standards, as applicable), the policy is applicable, irrespective of the project size, to all public sector steel manufacturers and all agencies/ entities under their administrative control, but not for commercial resale. The Policy also applies to the purchase of capital goods for manufacturing iron & steel products by private agencies for fulfilling an EPC contract and/or any other requirement of public sector steel manufacturers and all agencies/ entities under their administrative control. ii) No Global Tender Enquiry (GTE) shall be invited for tenders related to the procurement of Capital Goods for manufacturing iron & steel products (AppendixB of the DMI&SP Policy) having estimated value upto Rs. 200 Crore except with the approval of competent authority as designated by Department of Expenditure. (Refer para 4.3.2 also)
4. Purchase Preferences a) No Global Tender Enquiry (GTE) shall be invited for tenders related to the procurement of iron and steel products (Appendix-A of the Policy). The procurement process shall be open only to the manufacturers/ suppliers capable of meeting/ exceeding the domestic value-addition targets. Manufacturers/ suppliers not meeting the domestic value addition targets shall not be eligible to participate in the bidding. b) Purchase preference shall be provided to domestically manufactured capital goods listed in Appendix B if their quoted price falls within 20% of the price quoted for corresponding imported capital goods. If the procuring company considers the procured quantity cannot be divided in the prescribed ratio of 50:50, they shall have the right to award the contract to the eligible domestic manufacturer for a quantity not less than 50%, as may be divisible. The contract can be awarded to the eligible domestic manufacturer for the entire quantity if the tendered capital goods are nondivisible. If none of the eligible manufacturers meets domestic value addition requirements and matches the L1 bid, the original bidder holding the L1 bid shall secure the order for the entire procurement value.
5. Clause in Tender Document: The tender document for procurement of both Goods as well as for EPC contracts should explicitly outline the eligibility/ qualification criteria for adherence to minimum prescribed domestic value addition by the bidder for iron and steel products and capital goods for manufacturing iron & steel products (as indicated in Appendix A and Appendix B).
6. Standing Committee: A Standing Committee under the Ministry of Steel (MoS), to be chaired by the Secretary (Steel), shall be constituted to oversee the implementation of the Policy. The Committee shall comprise experts from Industry/ Industry Association/ Government Institution or Body/ Ministry of Steel (MoS). The said Committee in MoS shall have the mandate for the following:
a) Monitoring the implementation of the Policy b) Review and notify the Iron & Steel products list and the domestic value addition requirement criteria mentioned in Appendix A and Appendix B. c) Issue necessary clarifications for implementation of the Policy, including grant of exclusions to procuring agencies as per section 3 d) Constitute a separate committee to carry out grievance redressal e) The Standing Committee shall submit its recommendations for approval to the Ministry of Steel.
7. Certification of Local Content: a) To qualify as domestically manufactured iron and steel products/ Capital goods for manufacturing iron & steel products, for purchase preference under this Policy, a minimum domestic value addition of 20% to 50% is specified in Appendix A (of the policy - domestically manufactured iron and steel products) and 50% for Appendix B (of the policy - Capital goods for manufacturing iron & steel products). The domestic value-addition is based on self-certification. b) For products in Appendix A, each domestic manufacturer shall furnish the Affidavit of self-certification in the prescribed format to the procuring agency declaring that the iron & steel products are domestically manufactured in terms of the domestic value addition prescribed. It shall be the responsibility of the domestic manufacturer to ensure that the products supplied are indeed domestically manufactured in terms of the domestic value addition prescribed for the product. c) For capital goods in Appendix B, the bidder shall furnish the certification issued by the statutory auditor of the domestic manufacturer declaring that the capital goods are domestically manufactured in terms of the domestic value addition prescribed. The bidder shall also be required to provide a domestic value addition certificate on a halfyearly basis (September 30 and March 31), within 60 days of commencement of each half-year, duly certified by the Statutory Auditors of the domestic manufacturer, to the concerned procuring agencies till the completion of the supply, that the claims of domestic value addition made for the product during the preceding 6 months are in accordance with the Policy. d) The bidders who are selling agents/ authorized distributors/ authorized dealers/ authorized supply houses of the domestic manufacturers of iron & steel products are eligible to bid on behalf of the domestic manufacturers under the Policy. However, this shall be subject to the following conditions:
i) The bidder shall furnish the authorization certificate issued by the domestic manufacturer for selling domestically manufactured iron & steel products. ii) In case the procurement is covered under Appendix A of the Policy, the bidder shall furnish the Affidavit of self-certification issued by the domestic manufacturer to the procuring agency declaring that the iron & steel products are domestically manufactured in terms of the domestic value addition prescribed. iii) In case the procurement is covered under Appendix B of the Policy, the bidder shall furnish the certification issued by the statutory auditor to the domestic manufacturer declaring that the capital goods to be used in the Iron & Steel industry are domestically manufactured in terms of the domestic value addition prescribed. iv) The bidder shall be responsible for furnishing other documents required to be issued by the domestic manufacturer to the procuring agency as per the Policy.
8. Complaints and Penalties: a) Complaints relating to mis-declaration made to the procuring agency or Ministry of Steel shall be dealt with in the prescribed time frame by examining the documents at the bidder’s cost. A refundable cautionary deposit is required for complaints to the Ministry of Steel. b) Each procuring agency shall define the penalties in the tender document in case of wrong declaration by the bidder of the prescribed domestic value addition. The penalties may include forfeiting the EMD, other financial penalties, and debarment of the manufacturer/ service provider.
9. Specifications in Tenders and other procurement solicitations: a) Every procuring entity shall ensure that the eligibility conditions with respect to previous experience fixed in any tender or solicitation do not require proof of supply in other countries or proof of exports. b) Procuring entities shall endeavour to see that eligibility conditions, including on matters like turnover, production capability and financial strength, do not result in unreasonable exclusion of local suppliers who would otherwise be eligible beyond what is essential for ensuring the quality or creditworthiness of the supplier. c) Procuring entities shall review all existing eligibility norms and conditions with reference to sub-paragraphs a) and b) above. d) Reciprocity: If Ministry of Steel is satisfied that Indian suppliers of iron and steel products are not allowed to participate and/ or compete in procurement by any foreign government due to restrictive tender conditions which have direct or indirect effect of barring Indian companies such as registration in the procuring country, execution of project of specific value in the procuring country etc., it may, if deemed appropriate, restrict or exclude bidders from that country from eligibility for procurement of that item and/ or other items relating to Ministry of Steel. e) For the purpose of sub-paragraph d) above, a supplier or bidder shall be considered to be from a country if
(i) the entity is incorporated in that country, or
(ii) a majority of its shareholding or effective control of the entity is exercised from that country, or
(iii) more than 50% of the value of the item being supplied has been added in that country. Indian suppliers shall mean those entities that meet any of these tests with respect to India. The term ‘entity’ of a country shall have the same meaning as under the FDI (Foreign Direct Investment) Policy of DPIIT as amended from time to time.
Right to Information and Proactive Information Disclosures
f) In case restrictive or discriminatory conditions against domestic suppliers are included in tender documents, an inquiry shall be conducted by the Administrative Department undertaking the procurement (including procurement by any entity under its administrative control) to fix responsibility for the same. Thereafter, appropriate action, administrative or otherwise, shall be taken against erring officials of procuring entities under relevant provisions. Intimation on all such action shall be sent to the Standing Committee under the DMI&SP Policy.

GOODS_MANUAL

1.11.5 Support to Start-up Enterprises 1. Definition of Start-up Enterprises: a) As defined by DPIIT, an entity shall be considered as a 'Start-up':
Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, 2019 1. Background: DMI&SP policy provides a preference for Domestically Manufactured Iron and Steel Products (DMl & SP) in Government procurement. By promoting domestically manufactured iron and steel products as well as capital goods used for manufacturing iron and steel products, the Policy contributes to the growth of the Indian iron and steel industry. It was first notified in May 2017, revised in May 2019, and further amended in December 2020. The Ministry of Steel notified on March 8, 2024, of the extension of this Policy till November 2024.
i) Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India, ii) Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees, iii) The entity works towards innovation, development, or improvement of products, processes, or services, as well as a scalable business model with a high potential for employment generation or wealth creation. b)
Provided that an entity formed by splitting up or reconstructing an existing business shall not be considered a ‘Start-up.’ c) Provided further that in order to obtain benefits a Startup so identified under the above definition shall be required to be recognized as Startup by DPIIT.
2. Support to Start-ups: The Government of India has ordered the following support to Startups (as defined by the Department of Promotion of Industrial and Internal Trade - DPIIT).
a) Exemption from submission of Bid Security: Such Start-ups shall be exempted from payment of Earnest Money. b) 36Relaxation in Prior Turnover and Experience: The Procuring Entity reserves its right to relax the condition of prior turnover and prior experience for start-up enterprises recognized by the Department for Industry & Internal Trade (DPIIT), subject to meeting quality & technical specifications. Startups may be MSMEs or otherwise. Such relaxation can be provided in the case of procurement of works as well. It is further clarified that such relaxation is not optional but normally has to be ensured, except in case of procurement of items related to public safety, health, critical security operations and equipment, etc) where adequate justification exists for the Procuring Entity not to relax such criteria37. The decision of the Procuring Entity in this regard shall be final. Please also refer to para 5.1.3-7-c) and 7.4.2-1-b) (Rule 173
(i) of GFR 2017).
2. Applicability: a) Iron & Steel Products: i) The Policy applies to the government procurement of iron & steel products (listed in Appendix A of the Policy, produced in compliance with prescribed quality standards) by every Ministry or Department of Government and all agencies/ entities under their administrative control and to projects funded by these agencies. All Central Sector Schemes (CS)/Centrally Sponsored Schemes (CSS) for which
States and Local Bodies make procurement would come within the purview of this Policy if the Government of India fully / partly funds that project / scheme. However, this Policy shall not apply to purchasing iron & steel products with a view to commercial resale or to use in producing goods for commercial sale. The Policy also applies to private agencies' purchase of iron & steel products to fulfil an EPC contract and/ or any other requirement of the Ministry or Department of Government or their PSEs. However, this Policy shall not apply to purchasing iron & steel products with a view to commercial resale or to use in producing goods for commercial sale. ii) The Policy shall apply to projects where the procurement value of iron and steel products exceeds Rs. 5 lakhs. The Policy shall also be applicable for other procurements (non-project) where the annual procurement value of iron and steel products for that Government organization is more than Rs. 5 lakhs. However, it shall be ensured by procuring entities that procurement is not split to avoid the provisions of this Policy.
3. Waivers: Waivers shall be granted by the Ministry of Steel to all such government procurements subject to the conditions below. The exclusion requests shall be submitted to the Standing Committee along with sufficient proof of unavailability of domestically manufactured iron & steel products:
a) Where specific grades of steel are not manufactured in the country or b) Where the quantities as per the demand of the project cannot be met through domestic sources
b) Capital Goods for Manufacturing Iron & Steel Products i) For government procurement of capital goods for manufacturing iron & steel products listed in Appendix B of the Policy (produced in compliance with prescribed quality standards, as applicable), the policy is applicable, irrespective of the project size, to all public sector steel manufacturers and all agencies/ entities under their administrative control, but not for commercial resale. The Policy also applies to the purchase of capital goods for manufacturing iron & steel products by private agencies for fulfilling an EPC contract and/or any other requirement of public sector steel manufacturers and all agencies/ entities under their administrative control. ii) No Global Tender Enquiry (GTE) shall be invited for tenders related to the procurement of Capital Goods for manufacturing iron & steel products (AppendixB of the DMI&SP Policy) having estimated value upto Rs. 200 Crore except with the approval of competent authority as designated by Department of Expenditure. (Refer para 4.3.2 also)
4. Purchase Preferences a) No Global Tender Enquiry (GTE) shall be invited for tenders related to the procurement of iron and steel products (Appendix-A of the Policy). The procurement process shall be open only to the manufacturers/ suppliers capable of meeting/ exceeding the domestic value-addition targets. Manufacturers/ suppliers not meeting the domestic value addition targets shall not be eligible to participate in the bidding. b) Purchase preference shall be provided to domestically manufactured capital goods listed in Appendix B if their quoted price falls within 20% of the price quoted for corresponding imported capital goods. If the procuring company considers the procured quantity cannot be divided in the prescribed ratio of 50:50, they shall have the right to award the contract to the eligible domestic manufacturer for a quantity not less than 50%, as may be divisible. The contract can be awarded to the eligible domestic manufacturer for the entire quantity if the tendered capital goods are nondivisible. If none of the eligible manufacturers meets domestic value addition requirements and matches the L1 bid, the original bidder holding the L1 bid shall secure the order for the entire procurement value.
5. Clause in Tender Document: The tender document for procurement of both Goods as well as for EPC contracts should explicitly outline the eligibility/ qualification criteria for adherence to minimum prescribed domestic value addition by the bidder for iron and steel products and capital goods for manufacturing iron & steel products (as indicated in Appendix A and Appendix B).
6. Standing Committee: A Standing Committee under the Ministry of Steel (MoS), to be chaired by the Secretary (Steel), shall be constituted to oversee the implementation of the Policy. The Committee shall comprise experts from Industry/ Industry Association/ Government Institution or Body/ Ministry of Steel (MoS). The said Committee in MoS shall have the mandate for the following:
a) Monitoring the implementation of the Policy b) Review and notify the Iron & Steel products list and the domestic value addition requirement criteria mentioned in Appendix A and Appendix B. c) Issue necessary clarifications for implementation of the Policy, including grant of exclusions to procuring agencies as per section 3 d) Constitute a separate committee to carry out grievance redressal e) The Standing Committee shall submit its recommendations for approval to the Ministry of Steel.
7. Certification of Local Content: a) To qualify as domestically manufactured iron and steel products/ Capital goods for manufacturing iron & steel products, for purchase preference under this Policy, a minimum domestic value addition of 20% to 50% is specified in Appendix A (of the policy - domestically manufactured iron and steel products) and 50% for Appendix B (of the policy - Capital goods for manufacturing iron & steel products). The domestic value-addition is based on self-certification. b) For products in Appendix A, each domestic manufacturer shall furnish the Affidavit of self-certification in the prescribed format to the procuring agency declaring that the iron & steel products are domestically manufactured in terms of the domestic value addition prescribed. It shall be the responsibility of the domestic manufacturer to ensure that the products supplied are indeed domestically manufactured in terms of the domestic value addition prescribed for the product. c) For capital goods in Appendix B, the bidder shall furnish the certification issued by the statutory auditor of the domestic manufacturer declaring that the capital goods are domestically manufactured in terms of the domestic value addition prescribed. The bidder shall also be required to provide a domestic value addition certificate on a halfyearly basis (September 30 and March 31), within 60 days of commencement of each half-year, duly certified by the Statutory Auditors of the domestic manufacturer, to the concerned procuring agencies till the completion of the supply, that the claims of domestic value addition made for the product during the preceding 6 months are in accordance with the Policy. d) The bidders who are selling agents/ authorized distributors/ authorized dealers/ authorized supply houses of the domestic manufacturers of iron & steel products are eligible to bid on behalf of the domestic manufacturers under the Policy. However, this shall be subject to the following conditions:
i) The bidder shall furnish the authorization certificate issued by the domestic manufacturer for selling domestically manufactured iron & steel products. ii) In case the procurement is covered under Appendix A of the Policy, the bidder shall furnish the Affidavit of self-certification issued by the domestic manufacturer to the procuring agency declaring that the iron & steel products are domestically manufactured in terms of the domestic value addition prescribed. iii) In case the procurement is covered under Appendix B of the Policy, the bidder shall furnish the certification issued by the statutory auditor to the domestic manufacturer declaring that the capital goods to be used in the Iron & Steel industry are domestically manufactured in terms of the domestic value addition prescribed. iv) The bidder shall be responsible for furnishing other documents required to be issued by the domestic manufacturer to the procuring agency as per the Policy.
8. Complaints and Penalties: a) Complaints relating to mis-declaration made to the procuring agency or Ministry of Steel shall be dealt with in the prescribed time frame by examining the documents at the bidder’s cost. A refundable cautionary deposit is required for complaints to the Ministry of Steel. b) Each procuring agency shall define the penalties in the tender document in case of wrong declaration by the bidder of the prescribed domestic value addition. The penalties may include forfeiting the EMD, other financial penalties, and debarment of the manufacturer/ service provider.
9. Specifications in Tenders and other procurement solicitations: a) Every procuring entity shall ensure that the eligibility conditions with respect to previous experience fixed in any tender or solicitation do not require proof of supply in other countries or proof of exports. b) Procuring entities shall endeavour to see that eligibility conditions, including on matters like turnover, production capability and financial strength, do not result in unreasonable exclusion of local suppliers who would otherwise be eligible beyond what is essential for ensuring the quality or creditworthiness of the supplier. c) Procuring entities shall review all existing eligibility norms and conditions with reference to sub-paragraphs a) and b) above. d) Reciprocity: If Ministry of Steel is satisfied that Indian suppliers of iron and steel products are not allowed to participate and/ or compete in procurement by any foreign government due to restrictive tender conditions which have direct or indirect effect of barring Indian companies such as registration in the procuring country, execution of project of specific value in the procuring country etc., it may, if deemed appropriate, restrict or exclude bidders from that country from eligibility for procurement of that item and/ or other items relating to Ministry of Steel. e) For the purpose of sub-paragraph d) above, a supplier or bidder shall be considered to be from a country if
(i) the entity is incorporated in that country, or
(ii) a majority of its shareholding or effective control of the entity is exercised from that country, or
(iii) more than 50% of the value of the item being supplied has been added in that country. Indian suppliers shall mean those entities that meet any of these tests with respect to India. The term ‘entity’ of a country shall have the same meaning as under the FDI (Foreign Direct Investment) Policy of DPIIT as amended from time to time.
Right to Information and Proactive Information Disclosures
f) In case restrictive or discriminatory conditions against domestic suppliers are included in tender documents, an inquiry shall be conducted by the Administrative Department undertaking the procurement (including procurement by any entity under its administrative control) to fix responsibility for the same. Thereafter, appropriate action, administrative or otherwise, shall be taken against erring officials of procuring entities under relevant provisions. Intimation on all such action shall be sent to the Standing Committee under the DMI&SP Policy.

Para 1.11.5 — GOODS_MANUAL

Original Rule Text

Para 1.11.5 — GOODS_MANUAL

Original Rule Text