DPIIT, MeitY Clash Over Electronics Items Procurement Rules

New Delhi, Jun 3 (KNN) The Department of Promotion of Industry and Internal Trade (DPIIT) and the Ministry of Electronics and Information Technology (MeitY) are at odds over whether electronic items like storage consumables, printer cartridges, toners, and printer cables should be included in 'Appendix A' of the public procurement list.

According to sources, the DPIIT has suggested including these electronic items in Appendix A of the public procurement list following representations from the industry, reported ET.

However, MeitY holds a different view, arguing that since these products and accessories are considered "independent products," they should be kept out of Appendix A.

"The demand and volume for these products is deficient compared to other electronic items such as laptops, computer monitors, contactless and smart cards. The domestic value addition in these products is negligible," an IT ministry official said.

Appendix A of the public procurement rules categorizes suppliers based on their domestic content addition in products and services. Class-I local suppliers must have at least 50 per cent local content, while Class-II suppliers must have at least 20 per cent local content.

These suppliers are given preference in government tenders, including if their proposed cost is up to 20 per cent higher than the lowest bidder (L1).

MeitY's stance is that products like toners and printer cartridges have minimal local value addition, and there are few companies that qualify for bidding norms of various departments and ministries. "Such independent products can be bought on a demand basis," the IT ministry official added.

MeitY's rules currently include items like tablets, laptops, desktop PCs, thin clients, computer monitors, dot matrix printers, and contactless and smart cards in Appendix A of the public procurement list.

The clash between DPIIT and MeitY highlights the differing perspectives on promoting domestic manufacturing and aligning with the 'Make in India' initiative.

(KNN Bureau)