Push for Make in India: Ensure no restrictive clauses in tenders, CVOs told

In its communication, the CVC stated, “In order to implement PPP-MII order in letter and spirit, the Commission would direct all the Chief Vigilance Officer (CVO) to exercise oversight on all contracts over an amount of Rs 5 crore so as to ensure that restrictive and discriminative clauses against domestic suppliers are not included in the tender documents for procurement of goods and services and that the tender is in sync with the PPP-MII order 2017…”

Officials said the restrictive and discriminative clauses in tenders against domestic manufacturers were mainly observed in cases of Ministry of Railways and metro rail coaches. It was also observed that a large number of domestic suppliers had filed litigation against government departments alleging discrimination in award of contract.

Regarding the issue of Independent External Monitors (IEMs) for government contracts, the CVC’s communication said, “IEMs appointed by the ministries may keep in view the provisions of PPP-MII order 2017 while exercising their functions as IEM in respect of procurement which fall in their purview.” IEMs are appointed by ministries on guidelines issued by the CVC to ensure integrity in government’s contracts.

The government had issued the PPP-MII Order, 2017, on June 15, 2017, to promote production of goods and services to push Make in India. The Department of Industrial Policy and Promotion further directed all the central government departments, their attached or subordinate offices and autonomous bodies to ensure that purchase preference be given to domestic suppliers.