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Posted at: Aug 7, 2019, 7:07 AM; last updated: Aug 7, 2019, 7:07 AM (IST)

‘Make in Punjab’ policy soon

Local manufacturers to get preference in public procurement
‘Make in Punjab’ policy soon
Illustration: Sandeep Joshi

Vijay C Roy

Tribune News Service

Chandigarh, August 6

Punjab-based manufacturers of sports goods, bicycles, auto parts, engineering goods and textiles will have an edge over other states in public procurement as the Punjab government will soon notify “Make in Punjab” policy on the lines of the Centre’s ‘Make in India’ flagship programme to promote manufacturing and production of goods in the state.  

Under the policy, purchase preference during public procurement will be given to local manufacturing for up to 50% of the total quantity. The suppliers will have to ensure that at least 40% of their goods are produced in the state and their bids are under 15% margin of purchase preference above the lowest bid.

In the procurement of goods where there is sufficient local capacity and local competition so that there are at least six local manufacturers or suppliers eligible as per the tender conditions, purchase preference will be given to local suppliers if the value is up to Rs 30 lakh.

The procurement where the estimated value of the goods to be procured is less than Rs 1 lakh, it shall be exempt from the policy. However, it will be ensured by procuring entities that procurement is not spilt for the purpose of avoiding the provisions of this order.

“The policy has already been cleared by the state cabinet and has been sent to legal remembrancer for vetting. Once it is through, it will be notified. The policy will promote manufacturing and production of goods in Punjab,” said Punjab Bureau of Investment Promotion CEO Rajat Agarwal. 

It is expected that MSMEs, which are the backbone of the state’s economy, will be benefitted. The state has over 1.60 lakh MSMEs across all the sectors.

According to the industry, the move will facilitate investment, enhance skill development, protect intellectual property and build best-in-class manufacturing infrastructure in the state.

The ‘Make in Punjab’ programme is crucial for the economic growth of the state as it aims at utilising the existing talent base, creating additional employment opportunities and empowering secondary and tertiary sector, said an industry representative.

Under the Public Procurement (Preference to Make in Punjab) order, all state government departments, their attached or subordinate offices, autonomous bodies, boards, corporations owned or controlled by the state government and the urban local bodies would have to give preference to local players in procurement.

The minimum local content shall ordinarily be 40%. However, the department concerned may prescribe a higher or lower percentage in respect of any particular item and may also prescribe the manner of calculation of local content.

Under the policy, the procurement entities shall endeavour to see that eligibility conditions, including on matters like turnover, production capability and financial strength do not result in unreasonable exclusion of local suppliers who would otherwise be eligible.

Policy contours 

  • Goods manufactured in the state will be given preference in public procurement
  • Minimum local content should be 40%
  • Manufacturers of sports goods, bicycles, auto parts, engineering goods and textiles to be benefitted

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