The industry department has written to the Cabinet secretariat, asking it to do away with certain components of services in calculating local content under public procurement rules.
The components include transportation, insurance, installation, profit, commissioning, training, and after-sales support.
Including such services in the calculating local content is believed to lead to overestimating value added through domestic manufacturing.
This allows companies to meet local-content requirements without necessarily indigenising production, which undermines the goal of promoting local manufacturing and production.
In the 16th meeting of the standing committee to review the implementation of Public Procurement (Preference to Make in India) Order held last month, the Department for Promotion of Industry and Internal Trade (DPIIT) had objections to the notification by the Ministry of Petroleum and Natural Gas dated April 26, 2022, which allows the inclusion of components such as the Annual Maintenance Contract (AMC), the Comprehensive Maintenance Contract (CMC), training, transportation, and other services in the calculation.
Bu hikaye Business Standard dergisinin May 03, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin May 03, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Giriş Yap
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