What is Make in India (Class-I local supplier)?
Under the Make in India order, a Class-I local supplier offers goods or services with 50% or more local content and gets purchase preference.
What is a Class-I local supplier?
The Public Procurement (Preference to Make in India) Order 2017 gives preference in government purchases to goods, services and works with higher local content. It sorts suppliers by how much of the value of their offer is added in India.
- Class-I local supplier: local content of 50% or more
- Class-II local supplier: local content of 20% to less than 50%
- Non-local supplier: local content below 20%
How the preference works
Where the order applies, Class-I local suppliers get purchase preference. In simple terms, if the lowest bid is not from a Class-I local supplier, the lowest Class-I supplier within the allowed margin may be invited to match the L1 price and win all or part of the order, as the tender sets out.
Ministries can notify higher local content requirements for specific products, and some tenders are open only to Class-I suppliers, or to Class-I and Class-II suppliers. The rules for each case appear in the tender.
Tips for bidders
Declare your local content and class in the format the tender asks for, and state where the local value addition happens.
Work out local content honestly; false declarations can lead to debarment and other action. Above certain values, tenders may ask for a certificate from a statutory auditor or cost accountant, so check the threshold in the tender.
Common questions
Common questions about Make in India (Class-I local supplier) in government tenders.
Broadly, it is the value added in India as a share of the total value of the item, excluding net domestic indirect taxes. Follow the method given in the order and the tender.
A supplier whose goods, services or works have local content of 20% or more but less than 50%.
No. It applies as set out in the order and the tender. Some procurements are exempt, and thresholds and product lists differ.
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