Local preference move unlikely to give push to solar gear makers

 

For any procurement by the Central government agencies and nodal departments, the preference would be given to local products for which there is sufficient local capacity.

The recent policy decision of the Centre to prefer local equipment for renewable energy projects may further its drive for 'Make in India' products but is unlikely to provide any major push to the domestic solar manufacturers.

The ministry of new and renewable energy (MNRE) in a notification issued last week said that for any procurement by the Central government agencies and nodal departments, the preference would be given to local products for which there is sufficient local capacity. The notice enlisted close to 80 products ranging from solar cells and modules to wind turbine, electrical equipment for hydro, biogas etc.

In procurement of all goods and services or works in respect of which there is sufficient local capacity and local competition, only Class—I local supplier shall be eligible to bid irrespective of purchase value, the ministry said, reiterating a June notification by the Department of Promotion of Industry and Internal trade.

Class-I local supplier pertains to any supplier or service provider, whose goods, services or works offered for procurement, has local content equal to or more than 50 per cent.

“This order shall be applicable in respect of the procurements made by all agencies under the MNRE, including government companies and by the states and local bodies, making procurement under all central schemes where the project is fully or partially funded by the government,” said the MNRE order.