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Ministries at odds over IT gear inclusion in procurement list

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In Short:

The DPIIT and IT ministry are in disagreement over whether electronic items like printer cartridges and toners should be included in the public procurement list. The DPIIT wants these items included due to industry representation, while the MeitY believes they should be kept out as they have low domestic value addition. The public procurement rules give preference to suppliers with higher local content in their products.


Department of Promotion of Industry and Internal Trade (DPIIT) and IT Ministry at Odds Over Inclusion of Electronic Items in Public Procurement List

The Department of Promotion of Industry and Internal Trade (DPIIT) and the IT ministry are currently in disagreement over whether electronic items such as storage consumables, printer cartridges, toners, and printer cables should be placed in ‘Appendix A’ of the public procurement list, as per sources.

DPIIT’s Proposal

The DPIIT has recommended adding these electronic items to Appendix A of the public procurement list after receiving representations from the industry.

IT Ministry’s Perspective

Conversely, the Ministry of Electronics and Information Technology (MeitY) believes that since these products and accessories are considered “independent products,” they should be excluded from Appendix A.

An IT ministry official mentioned, “The demand and volume for these products are lower compared to other electronic items with minimal domestic value addition.”

Appendix A categorizes suppliers based on the domestic content addition in their products and services, granting preference to domestic suppliers in government tenders. Class-I suppliers have a minimum local content requirement of 50%, while class-II suppliers have at least 20% local content addition.

MeitY’s Inclusion Criteria

MeitY rules specify that products like tablets, laptops, desktop computers, thin clients, computer monitors, dot matrix printers, contactless and smart cards qualify for Appendix A inclusion in the public procurement list.

The IT ministry official emphasized that products like toners or printer cartridges have minimal local value addition, making it difficult for small companies to meet bidding norms for government tenders. These independent products can be procured as per demand basis.

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