The Indian government has amended provisions in Domestically Manufactured Iron & Steel Products widening its applicability to every project where the procurement value of iron and steel is above INR 5 lakh, against INR 25 crore earlier. The steel ministry also said that buyers must ensure that procurement is not split for the purpose of avoiding the provisions of this policy. The notification said “All central sector schemes, or centrally sponsored schemes for which procurement is made by states and local bodies, will come under the purview of this policy, if the project is fully or partly funded by the government. However, the amendment will not apply in the case of steel procurement tenders or notices inviting tenders that have already been floated by government-funded projects.
Indian Government had notified on 8th May, 2017 and subsequently revised in May, 2019 a Policy for providing preference to domestically manufactured iron & steel products in Government procurement. The policy mandates to provide preference to Domestically Manufactured iron & Steel Products with a minimum of 15%-50% value addition in Government Procurement. Each Ministry or Department of Government and all agencies under their administrative control will be under the purview of the DMI&SP order as notified by the Ministry of Steel. The policy has provisions for waivers to all such procurements, where specific grades of steel are not manufactured in the country, or the quantities as per the demand of the project cannot be met through domestic sources.