Public procurement norms may be tweaked to aid makers under PLI

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Key Points

The Indian government is considering changes to its public procurement rules to benefit manufacturers participating in production-linked incentive (PLI) schemes..

This move aims to boost domestic production and provide greater market access to PLI participants in government procurement.iStock..

The government is assessing the idea to offer the benefit of deemed local supplier status to a company that gets an item manufactured by its contract manufacturer, who is a beneficiary under the PLI schemes...

In July, the Department for Promotion of Industry and Internal Trade (DPIIT) revised the norms to include companies manufacturing an item under PLI scheme to be treated as deemed Class-II local supplier for that item provided they have received the PLI benefit from the respective ministry..

As per another official, the issue of PLI beneficiaries getting greater market access in government procurement is being reviewed in certain sectors wherein Class-I and Class-II criteria to define suppliers can be liberalised..