Concerning all orders made by the Government of India for new vehicles, the Ministry of Heavy Industries & Public Enterprises has said that preference will be given to made-in-India vehicles and parts. The ministry has said as much in a notification it released.
In this bid to encourage OEMs and component makers to domestically manufacture vehicles and components, the government body has stated that for procurement, a minimum localisation of 65 percent and 60 percent for ICE vehicles and components, respectively, will be necessary for it to qualify as being domestically manufactured.
The ministry has said that there is sufficient local capacity and local competition. It notified, "Where the estimated value of procurement is Rs 50 lakh or less, then only local suppliers shall be eligible, subject to meeting minimum local content. This would be applicable for procurement of 2Ws, PVs, 3Ws and CVs alike."
This government notification is now in immediate effect and will be reviewed after March 31, 2019.
Dipan Sur
Viraaj Bhatnagar
Suraj Viswanathan
Hormazd Sorabjee
