With an aim to boost domestic manufacturing, the Department of IT and Electronics (DeiTY) has constituted the National Planning and Monitoring Council to ensure strict enforcement of the preferential market access (PMA) policy regarding procurement tenders floated by government agencies.
The move comes in the wake of complaints received by DeiTY from indigenous manufacturers of electronics and telecom equipment gear. According to home-grown manufacturers and suppliers they faced several challenges in participating in a Rs 130 billion telecom infrastructure project for the armed forces since the eligibility norms were skewed in favour of foreign vendors. The project is being implemented by the state-run service provider Bharat Sanchar Nigam Limited (BSNL).
Earlier, industry bodies such as the Indian Electronics and Semiconductor Association, Telecom Equipment Manufacturers Association, Elcina Electronics Industries Association of India and the Telecom System Design and Manufacturers Association had written to Kapil Sibal, Minister of Telecommunications and IT and DeiTY, and the Prime Minister?s Office seeking strict enforcement of PMA policy that mandates domestic sourcing of electronics and telecom product for government led infrastructure and telecom projects.
Addressing the issues raised by domestic manufacturers, DeiTY has set in motion a governance mechanism to oversee implementation of PMA policy to provide preference to domestically manufactured electronics products in purchases made by the government. DeiTY has stated that the PMA policy will have to be followed in case of electronics procurement by all central ministries and departments, except defence forces. However, BSNL will have to abide by PMA policy for electronics and telecom purchases to be made for rolling out infrastructure project for armed forces since it is an initiative led by the Ministry of Telecommunications and IT.
