Oil and Natural Gas Corporation Ltd

•
PMC Cell- MM
Corporate Materials Management
2nd Floor, Tower-A, Oeendayal Urja Bhawan,
5, Nelson Mandela Marg, Vasant Kunj, New Delhi -110 070
Tel- (011)26752004 Fax - (011) 26129091

Circular No. 64/2022

No: DLI/CORP-MM/PMC/2022/13(206)/999745
Dated: 22.12.2022

Sub: Common examples of "Restrictive and discriminatory conditions against the local
suppliers" and "Other conditions which make the bid non-compliant to PPP-Mil
Order".

Reference is invited to Circular No. 38/2022 dated 08.09.2022 vide which various
instructions were issued with respect to Public Procurement (Preference to Make in India) (PPP-
Mil) Order, 2017.

Department of Promotion of Industry and Internal Trade (DPIIT) vide O.M. No. P-
45014/33/2021-BE-11 (E-64737) dated 20.12.2022 has informed that repeated references are being
received for alleged violation of Public Procurement (Preference to Make in India) (PPP-MII) Order,
2017. Accordingly, DPIIT in consultation with Department of Expenditure and GeM has identified
the "Common examples of restrictive and discriminatory conditions against the local suppliers" and
"Other conditions which make the bid non-compliant to PPP-MII Order". Copy of said O.M.
containing common examples of such conditions is attached for ready reference.

In this context, all concerned are advised to ensure that tenders are compliant with PPP-Mil
Order and restrictive and discriminatory conditions against the local supplier are ot to be included
in the tenders.

Distribution: (Through ONGC's intranet website 'reports.ongc.co.in').

All concerned may download the circular from the site. Hard copies are not distributed
separately.
 P-45014/33/2021-BE-1I (E-64737)
Government of India
Ministry of Commerce and Industry
Department for Promotion of Industry and Internal Trade
(Public Procurement Section)
Udyog Bhawan, New Delhi
Dated December zo",
2022

OFFICE MEMORANDUM

Subject: Common examples of "Restrictive and discriminatory conditions

against the local suppliers" and "Other conditions which make the bid non-
compliant to PPP-Mil Order" - reg.

The undersigned is directed to state that repeated references are being received
in this Department for alleged violation of Public Procurement (Preference to Make in
India) Order, 2017 (PPP-MII Order). The subject matter was reviewed in the 14th
Standing Committee meeting held on 20.09.2022 (copy of minutes enclosed) on
implementation of PPP-MII Order and it was decided that-

"DPIIT, DoE and GeM may jointly draft a common advisory to be issued to all
Ministriesl Departments regarding nature of grievances commonly observed in
the tendering process."

2. Accordingly, DPIIT in consultation with Department of Expenditure and GeM has

identified the "Common examples of restrictive and discriminatory conditions against the
local suppliers" and "Other conditions which make the bid non-compliant to PPP-Mil
Order", enclosed as Annexure "A".

3. Is requested to kindly publicize above amongst all procuring agencies under

your control and direct them to ensure that their tenders are compliant with PPP-MII
Order and don't include restrictive and discriminatory conditions against the local
suppliers.

4. This issues with the approval of competent authority

Encl: As Above
-1..~~
(pr~/k:1mar)
Under Secretary to the Government of India
Email: [email protected]
Tel: 23061306

To:

All Ministriesl Departments concerned

 Annexure "A"

Common examples of "Restrictive and discriminatory conditions against the local

suppliers" and "Other conditions which make the bid non-compliant to PPP-Mil
Order"

1. Restrictive and discriminatory eligibility criterial Tender conditions

a) Mandatory Presence in Gartner Magic Quadrant! Forrester Wavel lOCI

Frost and Sullivanl or any other similar foreign body I magazine I rating agency's
certification or review or validation in procurement of IT and Telecom Products.

b) Mandatory USFDA I European CE or any other similar Foreign Certification

without specifying any equivalent Indian Certification as alternative in
procurement of Medical Devices.

c) Mandatory UL I CSA Certification or any other similar Foreign

Certification without specifying any equivalent Indian Certification as alternative
in procurement of Electronic Devices.

d) Excessive turnover requirement as a pre-qualifying criteria, not

commensurate with financial capacity required for executing the contract i.e.
much in excess of Estimated Bid Value.

e) Excessive past experience requirement, not commensurate with the

proven experience expected from bidder for successful execution of contract.

f) Specific experience of supplying to other Nations being sought for e.g.

export experience of G8 countries

g) Additional requirement of Bank Guarantee for local supplier

h) Delayed Payment Terms for local suppliers

2. Restrictive and discriminatory technical specifications - Foreign brands

specified either for finished products or for part of scope of work I component of
scope of supply such as:
a) CISCO, NEC, Alcatel, Siemens being asked in Telecom Products

b) HP, Dell, Lenovo being asked in IT products

c) OTIS, Mitsubishi, Schindler, Kone, Johnson being asked in Lifts

d) Siemens, Schneider, GE Power being asked in Electrical Equipment

Contd.... 21
 -2-

3. Restrictive and discriminatory technical specifications - Pre-approved

foreign brands in works/turnkey projects whereas local manufacturers not
included in pre-approved list. Examples of pre-approved brands:-

a) Cameras- Honeywell, Bosch, Pelco

b) Network Switches- D-Link, Cisco, Brocade

c) Axial Fan- Kruger, Nicotra, Greenhench

4. Restrictive discriminatory technical specifications - Foreign technical

standards indicated in technical specification. Also, specification tailor made to
suit foreign products like:-

a) Minus 25-degree temperature compatibility for EPBX equipment being

procured for airport in Central India

b) Any other similar specification parameter being incorporate to eliminate

Mil products form competition without any recorded justification of requirement of
that specification value for intended end use of the product! service.

5. Other conditions which make the bid non-compliant to PPP-MII Order

a) Not incorporating suitable clause in the bid documents for giving

purchase preference to Class-I local suppliers.

b) Changing the minimum local content requirement for Class-lor Class-II

local supplier without approval of competent authority.

c) Stipulating in the bid document that the particular goods! works I service
category is exempted from the provisions of PPP-Mil Order since concerned
nodal ministry has not issued any notification for the same. It is clarified that
provisions of PPP-Mil Order applies on procurement of all categories of goods!
works! service, exceeding Rs. 5.0 Lakh in value. For the items, for which nodal
Ministry has not issued any notification, default provisions of PPP-Mil Order
apply.

d) Not evaluating bidders' status (viz. Class-II Class-III Non-local supplier)

during bid evaluation process based upon documents submitted by bidders in
their bid! granting them rights! privileges as defined in PPP-Mil Order.
Categorizing Class-II local supplier as Mil bidder in bid evaluation process and
giving them purchase preference is a very common mistake and need to be
checked very diligently for proper implementation of the policy.

6. The above list is only indicative in nature.

*******