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Centre to ask foreign firms to use more locally produced materials for govt projects

Indian authorities have been aggressively promoting Prime Minister Narendra Modi's flagship campaign of a self-reliant economy by urging domestic manufacturers to cut down on imports

twitter-logoPTI | September 19, 2020 | Updated 07:51 IST
Centre to ask foreign firms to use more locally produced materials for govt projects
DPIIT has still to announce the new local content requirement threshold for foreign firms entering into partnerships for state-run infrastructure projects

India will demand foreign firms use more locally produced materials when working on government-run projects, a government order said late on Friday.

Indian authorities have been aggressively promoting Prime Minister Narendra Modi's flagship campaign of a self-reliant economy by urging domestic manufacturers to cut down on imports.

The Indian trade ministry's Department for Promotion of Industry and Internal Trade (DPIIT), ordered all government administrative divisions to notify it of projects valued above 10 billion rupees ($135.96 million) that are planned for the next five years.

DPIIT has still to announce the new local content requirement threshold for foreign firms entering into partnerships for state-run infrastructure projects. The threshold is currently 20-50%.

Firms in countries which do not allow Indian companies to participate in their government projects will not be allowed to tender bids for Indian government projects, the order said.

Also read: Healthy FDI inflow shows foreign investors backed India's reforms:FM

Also read: PSBs sanctioned over 90% loans under PM SVANidhi scheme to help street vendors

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