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Indian Railways to introduce clause in procurement process to promote local vendors

PTI     July 25, 2020

The Railways is set to introduce a clause for promoting local content in its procurement process so that it gets more bids from local vendors/suppliers to give a boost to the government's mission Atmanirbhar Bharat, a statement from the national transporter said on Saturday.

It said that the Railway ministry has sought support of the Department for Promotion of Industry and Internal Trade (DPIIT) to make suitable policy revisions, if required.

"In a review meeting held today (Saturday) for steps to promote Make in India products in procurement process, it was emphasised to increase the participation of local vendors in the procurement process," the statement said.

Minister of Railways Piyush Goyal reviewed the steps to promote Make in India products in procurement process of Indian Railways as well as government of India, it said.

During the meeting, Goyal urged to take measures to generate confidence in industry of corruption free and transparent procurement environment on Indian Railways.

While reviewing the steps to promote Make in India products in procurement process, it was emphasised to increase the participation of local vendors in procurement process.

"Local content clause in the procurement should be such that we may get more bids from local vendors/suppliers. This would also give a boost to mission Atmanirbhar Bharat," the statement said.

Active support of DPIIT was sought to make suitable policy revisions, if required, to facilitate the efforts of Indian Railways in this direction, it said.

"It was felt that encouragement needs to be given to such vendors who can supply higher locally manufactured content. It was also suggested to create a FAQ section and a helpline number so that vendors may get clarity on various issues relating to procurement process," the statement said.

Detailed presentation was made by the member (materials management), railway board on enhancing Make in India and steps being taken to procure through Government e-Marketplace (GeM) along with the progress made.

Goyal emphasised on the need to do Railway goods and services procurement of approximately Rs 70,000 crore on GeM platform to open up the market to industry even at remote places and specially MSMEs.

During the meeting, it was decided that Railways would work more towards havinga user-friendly single step vendor web based interface for all its activities.

The website should, transparently, provide every interested vendor a clear idea of how to do business with Indian Railways.

It should also have all relevant information to generate confidence of corruption free and transparent environment on Indian Railways.

Also Read: Banks sanction Rs 1.30 lakh crore, disburse Rs 82,065 crore loans to MSMEs under credit guarantee scheme

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