Cabinet extends policy for providing preference to domestically manufactured iron & steel products in Govt procurement by 6 months

The Union Cabinet chaired by the Prime Minister Narendra Modi has extended the policy for providing preference to domestically manufactured iron and steel products on Government procurement by 6 months with effect from May 29, 2024, a gazette notification issued by the Ministry of Steel stated on Monday.

The notification read: "In terms of the provisions of Para 10.1 of the revised Policy for providing preference to domestically manufactured Iron & Steel Products in Government procurement, published in the Gazette of India vide NotificationNo.3(2)/2018-IDD dated 29.5.2019 [G.S.R. 385(E)], the applicable term of the Policy is hereby extended for a further period of 6 months with effect from 29.5.2024."

This policy seeks to accomplish the PM's vision of 'Make in India' with objective of nation building and encourage encourage domestic manufacturing.

As per an esrlier PIB release, the policy mandates to provide preference to Domestically Manufactured Iron & Steel Products (DM1&SP), in Government Procurement. The policy is applicable on all government tenders where price bid is yet to be opened.

"DMI&SP policy provides a minimum value addition of 15 per cent in notified steel products which are covered under preferential procurement. In order to provide flexibility, Ministry of Steel may review specified steel products and the minimum value addition criterion," the release added.