draft Ministry of New and Renewable Energy Published

F. No. 283/22/2019-GRID SOLAR '-fRT '1k I Government of India 'ic1-f s31t ici,,ulq ii i-i 1(ii Ministry of New & Renewable Energy Block No. 14, C.G.O. Complex, Lodhi Road, New Delhi — 110003 Dated: 23rd September, 2020 ORDER Sub: Public Procurement (Preference to Make in India) to provide for Purchase Preference (linked with local content) in respect of Renewable Energy (RE) Sector. Ref: Department for Promotion of Industry and Internal Trade (DPIIT) Notification No.P- 45021/2/2017-PP (BE-Il) dated 4th June, 2020. The Government of India, Department for Promotion of Industry and Internal Trade (DPIIT) issued Public Procurement (Preference to Make in India), Order 2017 for encouraging 'Make in India' and promoting manufacturing and production of goods and services in India with a view to enhancing income and employment. Further, DPIIT vide order No.P-45021/212017-PP (BE-Il) dated 4th June, 2020, have issued the revised Public Procurement (Preference to Make in India) Order 2017. 2. In the light of the Public Procurement (Preference to Make in India) Order 2017, this Ministry had issued O.M. No. 14615712018-P&C dated 11th December, 2018 covering certain products related to renewable energy sector under the Public Procurement (Preference to Make in India) Order and specifying the Minimum Percentage of local content required for such renewable energy products. 3.

d to renewable energy sector under the Public Procurement (Preference to Make in India) Order and specifying the Minimum Percentage of local content required for such renewable energy products. 3. In furtherance of Para 19 of the DPIIT Notification No.P-4502112/2017-PP(BEII) dated 04.06.2020 and in supersession of all the aforementioned orders issued by this Ministry, the following has been decided: For the purpose of this order, the definitions of various terms used in the order, and provisions relating to (i) Eligibility of 'Class-I local supplier' / 'Class-Il local supplier' / 'Non-local suppliers' for different types of procurement, (ii) purchase preference, (iii) exemption to small purchases, and (iv) margin of purchase preference, shall be the same as in DPIIT order dated 04.06.2020, referred to above and extracts of the same given at Appendix. ii. In procurement of all goods and services or works in respect of which there is sufficient local capacity and local competition as in Annexure-I, only "Class—I local supplier', shall be eligible to bid irrespective of purchase value. iii. In procurement of all goods, services or works not covered by sub-para 3 (ii) above, and with estimated value of purchases less than Rs.200 Crore, in accordance with Rule 161(iv) of GFR, 2017, Global Tender Enquiry (GTE) shall not be issued except with the approval of the competent authority as designated by Department of Expenditure.

Crore, in accordance with Rule 161(iv) of GFR, 2017, Global Tender Enquiry (GTE) shall not be issued except with the approval of the competent authority as designated by Department of Expenditure. Only 'Class-I local supplier' and 'Class-Il local supplier' shall be eligible to bid in procurement undertaken by procuring entities, except when Global Tender Page 1 of 12 F. No. 283/22/2019-GRID SOLAR 4Rd NIN / Government of India 1ala six 4ala.xofiug,if Hail4/ Ministry of New & Renewable Energy ORDER Block No. 14, C.G.O. Complex, Lodhi Road, New Delhi - 110003 Dated: 23 September, 2020 Sub: Public Procurement (Preference to Make in India) to provide for Purchase Preference (linked with local content) in respect of Renewable Energy (RE) Sector. Ref: Department for Promotion of Industry and Internal Trade (DPIIT) Notification No.P­ 45021/2/2017-PP (BE-II) dated 4 June, 2020. The Government of India, Department for Promotion of Industry and Internal Trade (DPIIT} issued Public Procurement (Preference to Make in India}, Order 2017 for encouraging 'Make in India' and promoting manufacturing and production of goods and services in India with a view to enhancing income and employment. Further, DPIIT vide order No.P-45021/2/2017-PP (BE-II) dated 4 June, 2020, have issued the revised Public Procurement (Preference to Make in India) Order 2017. 2. In the light of the Public Procurement (Preference to Make in India) Order 2017, this Ministry had issued O.M. No.

sued the revised Public Procurement (Preference to Make in India) Order 2017. 2. In the light of the Public Procurement (Preference to Make in India) Order 2017, this Ministry had issued O.M. No. 146/57/2018-P&C dated 11Î December, 2018 covering certain products related to renewable energy sector under the Public Procurement (Preference to Make in India) Order and specifying the Minimum Percentage of local content required for such renewable energy products. 3. In furtherance of Para 19 of the DPIIT Notification No.P-45021/2/2017-PP(BEII) dated 04.06.2020 and in supersession of all the aforementioned orders issued by this Ministry, the following has been decided: I. For the purpose of this order, the definitions of various terms used in the order, and provisions relating to (i) Eligibility of 'Class-I local supplier' / 'Class-II local supplier' / 'Non-local suppliers' for different types of procurement, (ii) purchase preference, (iii) exemption to small purchases, and (iv} margin of purchase preference, shall be the same as in DPIIT order dated 04.06.2020, referred to above and extracts of the same given at Appendix. ii. In procurement of all goods and services or works in respect of which there is sufficient local capacity and local competition as in Annexure-1, only "Class-I local supplier", shall be eligible to bid irrespective of purchase value. 111.

or works in respect of which there is sufficient local capacity and local competition as in Annexure-1, only "Class-I local supplier", shall be eligible to bid irrespective of purchase value. 111. In procurement of all goods, services or works not covered by sub-para 3 (ii) above, and with estimated value of purchases less than Rs.200 Crore, in accordance with Rule 161(iv) of GFR, 2017, Global Tender Enquiry (GTE) shall not be issued except with the approval of the competent authority as designated by Department of Expenditure. Only 'Class-I local supplier' and 'Class-II local supplier' shall be eligible to bid in procurement undertaken by procuring entities, except when Global Tender Page 1 of 12

Enquiry has been issued. In Global tender enquiries, 'Non-local suppliers' shall also be eligible to bid along with 'Class-I local suppliers' and 'Class-Il local suppliers'. iv. For the purpose of this order, 'Works' means all works as per Rule 130 of GFR2O17, and will also include 'turnkey works', Engineering, Procurement and Construction (EPC) contracts and service contracts including System Integrator (SI) contracts. 4. The list of items, in respect of which, local capacity with sufficient competition exists as per Annexure-1, will be reviewed at regular intervals with a view to increase number of items in this list. 5. Purchase preference shall be given to local suppliers in accordance with para 3A of DPIIT Order dated 04.06.2020, and extracts of the same given at Appendix. 6.

number of items in this list. 5. Purchase preference shall be given to local suppliers in accordance with para 3A of DPIIT Order dated 04.06.2020, and extracts of the same given at Appendix. 6. Further, it has been decided to constitute a committee for independent verification of self- declarations and auditor's / accountant's certificates on random basis and in the case of complaints. The composition of the committee is given below: Chairperson DG, NISE Member Dir(JKJ) Member Dir(Wind) External Expert Dir(Technical),IREDA Dir(RG) Convener 7. Further, it has also been decided to constitute a committee to examine the grievances in consultation with stakeholders and recommend appropriate actions to the Competent Authority in MNRE. The composition of the Committee is given below: Chairperson EA Member Dir(Wind) Member Dir(JKJ) Convener Dir(RG) 8. The complaint fee of Rs.2 Lakh or 1% of the value of the local item being procured (subject to maximum of Rs.5 Lakh), whichever is higher, shall be paid in the form of online transaction or Demand Draft, drawn in favour of IREDA. In case the complaint is found to be incorrect, the complaint fee shall be forfeited. In case, the complaint is upheld and found to be substantially correct, deposited fee of the complainant would be refunded without any interest. 9. All other conditions, not stipulated in this order, shall be as laid down in the DPIlT's order No. P-45021/2/2017-PP (BE-Il) dated 04.06.2020. 10.

inant would be refunded without any interest. 9. All other conditions, not stipulated in this order, shall be as laid down in the DPIlT's order No. P-45021/2/2017-PP (BE-Il) dated 04.06.2020. 10. This order shall be applicable in respect of the procurements made by all attached or subordinate offices or autonomous body under the Ministry of New & Renewable Energy, Government of India including Government Companies as defined in the Companies Act, and for the States and Local Bodies making procurement under all Central Schemes! Central Sector Schemes where the Scheme is fully or partially funded by Government of India. The aforesaid order shall also be applicable in respect of funding of capital equipment by IREDA, PFC and REC, for all RE projects, for which the bids are issued on or after 1St April, 2021. Page 2 of 12 Enquiry has been issued. In Global tender enquiries, 'Non-local suppliers' shall also be eligible to bid along with 'Class-I local suppliers' and 'Class-II local suppliers' iv. For the purpose of this order, 'Works' means all works as per Rule 130 of GFR2017, and will also include 'turnkey works', Engineering, Procurement and Construction (EPC) contracts and service contracts including System Integrator (SI) contracts. 4. The list of items, in respect of which, local capacity with sufficient competition exists as per Annexure-1, will be reviewed at regular intervals with a view to increase number of items in this list. 5.

t of items, in respect of which, local capacity with sufficient competition exists as per Annexure-1, will be reviewed at regular intervals with a view to increase number of items in this list. 5. Purchase preference shall be given to local suppliers in accordance with para 3A of DPIIT Order dated 04.06.2020, and extracts of the same given at Appendix. 6. Further, it has been decided to constitute a committee for independent verification of self­ declarations and auditor's I accountant's certificates on random basis and in the case of complaints. The composition of the committee is given below: Chairperson DG, NISE Member Dir(JKJ) Member Dir(Wind) External Expert Dir(Technical), IREDA Convener Dir(RG) 7. Further, it has also been decided to constitute a committee to examine the grievances in consultation with stakeholders and recommend appropriate actions to the Competent Authority in MNRE. The composition of the Committee is given below: Chairperson EA Member Dir(Wind) Member Dir(JKJ) Convener Dir(RG) 8. The complaint fee of Rs.2 Lakh or 1% of the value of the local item being procured (subject to maximum of Rs.5 Lakh), whichever is higher, shall be paid in the form of online transaction or Demand Draft, drawn in favour of IREDA. In case the complaint is found to be incorrect, the complaint fee shall be forfeited. In case, the complaint is upheld and found to be substantially correct, deposited fee of the complainant would be refunded without any interest. 9.

incorrect, the complaint fee shall be forfeited. In case, the complaint is upheld and found to be substantially correct, deposited fee of the complainant would be refunded without any interest. 9. All other conditions, not stipulated in this order, shall be as laid down in the DPIIT's order No.P-45021/2/2017-PP (BE-II) dated 04.06.2020. 10. This order shall be applicable in respect of the procurements made by all attached or subordinate offices or autonomous body under the Ministry of New & Renewable Energy, Government of India including Government Companies as defined in the Companies Act, and /or the States and Local Bodies making procurement under all Central Schemes/ Central Sector Schemes where the Scheme is fully or partially funded by Government of India. The aforesaid order shall also be applicable in respect of funding of capital equipment by IREDA, PFC and REC, for all RE projects, for which the bids are issued on or after 1st April, 2021. Page 2 of 12

esaid order shall also be applicable in respect of funding of capital equipment by IREDA, PFC and REC, for all RE projects, for which the bids are issued on or after 1st April, 2021. Page 2 of 12

11. Procuring entities as defined in the DPIIT's Order dated 04.06.2020 are advised to revise their tender documents fully complying with the said DPIIT's Order and the subsequent Orders that would be issued in this regard by DPIIT/this Ministry from time to time.

All tenders for procurement by Central Government Agencies have to be certified for compliance of the PPP-MII Order by the concerned procurement officer of the Government Organization before uploading in the portal. 13. In pursuance of the provision of para 13 of the DPIIT Order, 2020, equipment used in the renewable energy sector which are manufactured under license from foreign manufacturers holding intellectual property rights and where there is a transfer of technology agreement, if any, are listed as under Annexure-Il. However, Annexure-Il will undergo regular review to check for those items in the list for which sufficient local manufacturing capacity and competition have got developed and which meet minimum local content of 50% now, so that these items become eligible for inclusion in Annexure-1 of this order and the provisions as contained in para 3 above of this order start becoming applicable in respect of these items too. 14.

hat these items become eligible for inclusion in Annexure-1 of this order and the provisions as contained in para 3 above of this order start becoming applicable in respect of these items too. 14. In order to further encourage Make in India initiative and promote manufacturing and production of goods and services in India, general guidelines as enclosed at Annexure-Ill may be adopted in an appropriate manner according to the circumstances by the procuring entities in their tendering process. 15. This issues with the approval of Hon'ble MoS (IC) for NRE and Power. (Mohd AzmaIMansoori) Scientist-B Email: azmaI.mnregov.in
To:

1. All Ministries! Departments of Government of India (As per list)
2. Secretary (Coordination), Cabinet Secretariat
3. PS to PM, Prime Minister's Office
4. Vice Chairman, NITI Aayog
5. Chief Secretaries of all States!UTs
6. Director General, Comptroller and Auditor General of India
7. Secretary, DPIIT, Chairman of Standing Committee for implementation of Public Procurement Order, 2017
8. Joint Secretary, DPIlT, Member-Convener of Standing Committee for implementation of Public Procurement Order, 2017
9. Chairperson, CEA
10. CMDs of CPSEs under MNRE & MoP
11. All Group Heads in MNRE Page 3 of 12 (Mohd AzmaIMansoori) Scientist-B

Procuring entities as defined in the DPIIT's Order dated 04.06.2020 are advised to revise their tender documents fully complying with the said DPIIT's Order and the subsequent Orders that would be issued in this regard by DPIIT/this Ministry from time to time. 12.

are advised to revise their tender documents fully complying with the said DPIIT's Order and the subsequent Orders that would be issued in this regard by DPIIT/this Ministry from time to time. 12. All tenders for procurement by Central Government Agencies have to be certified for compliance of the PPP-MlI Order by the concerned procurement officer of the Government Organization before uploading in the portal. 13. In pursuance of the provision of para 13 of the DPIIT Order, 2020, equipment used in the renewable energy sector which are manufactured under license from foreign manufacturers holding intellectual property rights and where there is a transfer of technology agreement, if any, are listed as under Annexure-I1. However, Annexure-11 will undergo regular review to check for those items in the list for which sufficient local manufacturing capacity and competition have got developed and which meet minimum local content of 50% now, so that these items become eligible for inclusion in Annexure-I of this order and the provisions as contained in para 3 above of this order start becoming applicable in respect of these items too. 14. In order to further encourage Make in India initiative and promote manufacturing and production of goods and services in India, general guidelines as enclosed at Annexure-111 may be adopted in an appropriate manner according to the circumstances by the procuring entities in their tendering process. 15. This issues with the approval of Hon'ble MoS (IC) for NRE and Power.

y be adopted in an appropriate manner according to the circumstances by the procuring entities in their tendering process. 15. This issues with the approval of Hon'ble MoS (IC) for NRE and Power. To: 2 Josh­ mal Mansoori) Scientist-8 Email: azmal.mnre@gov.in 1. All Ministries/ Departments of Government of India (As per list) 2. Secretary (Coordination), Cabinet Secretariat 3. PS to PM, Prime Minister's Office 4. Vice Chairman, NITI Aayog 5. Chief Secretaries of all States/UTs 6. Director General, Comptroller and Auditor General of India 7. Secretary, DPIIT, Chairman of Standing Committee for implementation of Public Procurement Order, 2017 8. Joint Secretary, DPIIT, Member-Convener of Standing Committee for implementation of Public Procurement Order, 2017 9. Chairperson, CEA 10. CMDs of CPSEs under MNRE & MoP 11. All Group Heads in MNRE Page 3 of 12

Appendix Extracts of important provisions contained in DPIIT Order No.P-450211212017-PP (BE-lQ dated 4th June, 2020 I. Definitions: 'Local content means the amount of value added in India which shall, unless otherwise prescribed by the Nodal Ministry, be the total value of the item procured (excluding net domestic indirect taxes) minus the value of imported content in the item (including all customs duties) as a proportion of the total value, in percent. 'Class-I local supplier' means a supplier or service provider, whose goods, services or works offered hr procurement, has local content equal to or more than 50%, as defined under said Order.

ent. 'Class-I local supplier' means a supplier or service provider, whose goods, services or works offered hr procurement, has local content equal to or more than 50%, as defined under said Order. 'Class-li local supplier' means a supplier or service provider, whose goods, services or works offered for procurement, has local content more than 20% but less than 50%, as defined under this Order. 'Non-Local supplier' means a supplier or service provider, whose goods, services or works offered for procurement, has local content less than or equal to 20%, as defined under this Order. 'LI' means the lowest tender or lowest bid or the lowest quotation received in a tender, bidding process or other procurement solicitation as adjudged in the evaluation process as per the tender or other procurement solicitation. 'Margin of purchase preference' means the maximum extent to which the price quoted by a "Class-I local supplier" may be above the Li for the purpose of purchase preference. 'Procuring entity' means a Ministry or department or attached or subordinate office of, or autonomous body controlled by, the Government of India and includes Government companies as defined in the Companies Act. 'Works' means all works as per Rule 130 of GFR- 2017, and will also include turnkey works'.

ontrolled by, the Government of India and includes Government companies as defined in the Companies Act. 'Works' means all works as per Rule 130 of GFR- 2017, and will also include turnkey works'. 2. Eligibility of 'Class-I local supplier'! 'Class-Il local supplier'! 'Non-local suppliers' for different types of procurement a) In procurement of all goods, services or works in respect of which the Nodal Ministry I Department has communicated that there is sufficient local capacity and local competition, only 'Class-I local supplier, as defined under the Order, shall be eligible to bid irrespective of purchase value. b) In procurement of all goods, services or works, not covered by 2(a) above, and with estimated value of purchases less than Rs.200 Crore, in accordance with Rule 161(iv) of GFR, 2017, Global Tender Enquiry shall not be issued except with the approval of competent authority as designated by Department of Expenditure. Only 'Class-I local supplier' and 'Class-Il local supplier', as defined under the Order, shall be eligible to Page4of12 Appendix Extracts of important provisions contained in DPIIT Order No.P-45021/2/2017-PP (BE-II) dated 4th June, 2020 1. Definitions: 'Local content' means the amount of value added in India which shall, unless otherwise prescribed by the Nodal Ministry, be the total value of the item procured (excluding net domestic indirect taxes) minus the value of imported content in the item (including all customs duties) as a proportion of the total value, in percent.

tal value of the item procured (excluding net domestic indirect taxes) minus the value of imported content in the item (including all customs duties) as a proportion of the total value, in percent. 'Class-I local supplier' means a supplier or service provider, whose goods, services or works offered fr procurement, has local content equal to or more than 50%, as defined under said Order. 'Class-II local supplier' means a supplier or service provider, whose goods, services or works offered for procurement, has local content more than 20% but less than 50%, as defined under this Order. 'Non-Local supplier' means a supplier or service provider, whose goods, services or works offered for procurement, has local content less than or equal to 20%, as defined under this Order. 'L1' means the lowest tender or lowest bid or the lowest quotation received in a tender, bidding process or other procurement solicitation as adjudged in the evaluation process as per the tender or other procurement solicitation. 'Margin of purchase preference' means the maximum extent to which the price quoted by a "Class-I local supplier" may be above the L 1 for the purpose of purchase preference. 'Procuring entity' means a Ministry or department or attached or subordinate office of, or autonomous body controlled by, the Government of India and includes Government companies as defined in the Companies Act. 'Works' means all works as per Rule 130 of GFR- 2017, and will also include 'turnkey works'. 2.

lled by, the Government of India and includes Government companies as defined in the Companies Act. 'Works' means all works as per Rule 130 of GFR- 2017, and will also include 'turnkey works'. 2. Eligibility of 'Class-I local supplier'/ 'Class-II local supplier'/ 'Non-local suppliers' for different types of procurement a) In procurement of all goods, services or works in respect of which the Nodal Ministry / Department has communicated that there is sufficient local capacity and local competition, only 'Class-I local supplier', as defined under the Order, shall be eligible to bid irrespective of purchase value. b) In procurement of all goods, services or works, not covered by 2(a) above, and with estimated value of purchases less than Rs.200 Crore, in accordance with Rule 161(iv) of GFR, 2017, Global Tender Enquiry shall not be issued except with the approval of competent authority as designated by Department of Expenditure. Only 'Class-I local supplier' and 'Class-II local supplier', as defined under the Order, shall be eligible to Page 4 of 12

roval of competent authority as designated by Department of Expenditure. Only 'Class-I local supplier' and 'Class-II local supplier', as defined under the Order, shall be eligible to Page 4 of 12

bid in procurements undertaken by procuring entities, except when Global Tender Enquiry has been issued. In Global Tender Enquiries, 'Non-local suppliers' shall also be eligible to bid along with 'Class-I local suppliers' and 'Class-Il local suppliers'. c) For the purpose of this Order, works includes Engineering, Procurement and Construction (EPC) contracts and services include System Integrator (SI) contracts. 3. Purchase Preference a) Subject to the provisions of this Order and to any specific instructions issued by the Nodal Ministry or in pursuance of this Order, purchase preference shall be given to 'Class-I local supplier' in procurements undertaken by procuring entities in the manner specified here under. b) In the procurements of goods or works, which are covered by para 2(b) above and which are divisible in nature, the 'Class-I local supplier' shall get purchase preference over 'Class-Il local supplier' as well as 'Non-local supplier', as per following procedure: Among all qualified bids, the lowest bid will be termed as Li. If Li is 'Class-I local supplier', the contract for full quantity will be awarded to Li. If Li bid is not a 'Class-I local supplier', 50% of the order quantity shall be awarded to Li.

ermed as Li. If Li is 'Class-I local supplier', the contract for full quantity will be awarded to Li. If Li bid is not a 'Class-I local supplier', 50% of the order quantity shall be awarded to Li. Thereafter, the lowest bidder among the 'Class-I local supplier' will be invited to match the Li price for the remaining 50% quantity subject to the Class-I local supplier's quoted price falling within the margin of purchase preference, and contract for that quantity shall be awarded to such 'Class-I local supplier' subject to matching the Li price, In case such lowest eligible 'Class-I local supplier' fails to match the Li price or accepts less than the offered quantity, the next higher 'Class-I local supplier' within the margin of purchase preference shall be invited to match the Li price for remaining quantity and so on, and contract shall be awarded accordingly. In case some quantity is still left uncovered on Class-I local suppliers, then such balance quantity may also be ordered on the Li bidder. c) In the procurements of goods or works, which are covered by para 2(b) above and which are not divisible in nature, and in procurement of services where the bid is evaluated on price alone, the 'Class-I local supplier' shall get purchase preference over 'Class-Il local supplier' as well as 'Non-local supplier', as per following procedure: Among all qualified bids, the lowest bid will be termed as Li. If Li is 'Class-I local supplier', the contract will be awarded to Li.

r' as well as 'Non-local supplier', as per following procedure: Among all qualified bids, the lowest bid will be termed as Li. If Li is 'Class-I local supplier', the contract will be awarded to Li. If Li is not 'Class-I local supplier', the lowest bidder among the 'Class-I local supplier', will be invited to match the Li price subject to Class-I local supplier's quoted price falling within the margin of purchase preference, and the contract shall be awarded to such 'Class-I local supplier' subject to matching the Li price. iii. In case such lowest eligible 'Class-I local supplier' fails to match the Li price, the 'Class-I local supplier' with the next higher bid within the margin of purchase preference shall be invited to match the Li price and so on and contract shall be Page 5 of 12 bid in procurements undertaken by procuring entities, except when Global Tender Enquiry has been issued. In Global Tender Enquiries, 'Non-local suppliers' shall also be eligible to bid along with 'Class-I local suppliers' and 'Class-II local suppliers'. c) For the purpose of this Order, works includes Engineering, Procurement and Construction (EPC) contracts and services include System Integrator (SI) contracts. 3. Purchase Preference a) Subject to the provisions of this Order and to any specific instructions issued by the Nodal Ministry or in pursuance of this Order, purchase preference shall be given to 'Class-I local supplier' in procurements undertaken by procuring entities in the manner specified here under.

he Nodal Ministry or in pursuance of this Order, purchase preference shall be given to 'Class-I local supplier' in procurements undertaken by procuring entities in the manner specified here under. b) In the procurements of goods or works, which are covered by para 2(b) above and which are divisible in nature, the 'Class-I local supplier' shall get purchase preference over 'Class-II local supplier' as well as 'Non-local supplier', as per following procedure: i. Among all qualified bids, the lowest bid will be termed as L1. If L1 is 'Class-I local supplier', the contract for full quantity will be awarded to L1. 11. If L1 bid is not a 'Class-I local supplier', 50% of the order quantity shall be awarded to L1. Thereafter, the lowest bidder among the 'Class-I local supplier' will be invited to match the L1 price for the remaining 50% quantity subject to the Class-I local supplier's quoted price falling within the margin of purchase preference, and contract for that quantity shall be awarded to such 'Class-I local supplier' subject to matching the L1 price, In case such lowest eligible 'Class-I local supplier' fails to match the L1 price or accepts less than the offered quantity, the next higher 'Class-I local supplier' within the margin of purchase preference shall be invited to match the L1 price for remaining quantity and so on, and contract shall be awarded accordingly. In case some quantity is still left uncovered on Class-I local suppliers, then such balance quantity may also be ordered on the L1 bidder.

ity and so on, and contract shall be awarded accordingly. In case some quantity is still left uncovered on Class-I local suppliers, then such balance quantity may also be ordered on the L1 bidder. c) In the procurements of goods or works, which are covered by para 2(b) above and which are not divisible in nature, and in procurement of services where the bid is evaluated on price alone, the 'Class-I local supplier' shall get purchase preference over 'Class-II local supplier' as well as 'Non-local supplier', as per following procedure: i. Among all qualified bids, the lowest bid will be termed as L 1. If L1 is 'Class-I local supplier', the contract will be awarded to L 1. ii. If L1 is not 'Class-I local supplier', the lowest bidder among the 'Class-I local supplier', will be invited to match the L 1 price subject to Class-I local supplier's quoted price falling within the margin of purchase preference, and the contract shall be awarded to such 'Class-I local supplier' subject to matching the L1 price. iii. In case such lowest eligible 'Class-I local supplier' fails to match the L 1 price, the 'Class-I local supplier' with the next higher bid within the margin of purchase preference shall be invited to match the L1 price and so on and contract shall be Page 5 of 12

h the L 1 price, the 'Class-I local supplier' with the next higher bid within the margin of purchase preference shall be invited to match the L1 price and so on and contract shall be Page 5 of 12

awarded accordingly, In case none of the 'Class-I local supplier within the margin of purchase preference matches the Li price, the contract may be awarded to the Li bidder. d) "Class-Il local supplier" will not get purchase preference in any procurement, undertaken by procuring entities. 4. Exemption of small purchases: Procurements where the estimated value to be procured is less than Rs.5 Lakh shall be exempt from this Order. However, it shall be ensured by procuring entities that procurement is not split for the purpose of avoiding the provisions of this Order. 5. Margin of Purchase Preference: The margin of purchase preference shall be 20%. Page 6 of 12 awarded accordingly, In case none of the 'Class-I local supplier' within the margin of purchase preference matches the L1 price, the contract may be awarded to the L1 bidder. d) "Class-II local supplier" will not get purchase preference in any procurement. undertaken by procuring entities. 4. Exemption of small purchases: Procurements where the estimated value to be procured is less than Rs.5 Lakh shall be exempt from this Order. However, it shall be ensured by procuring entities that procurement is not split for the purpose of avoiding the provisions of this Order. 5. Margin of Purchase Preference: The margin of purchase preference shall be 20% Page 6 of 12

ing entities that procurement is not split for the purpose of avoiding the provisions of this Order. 5. Margin of Purchase Preference: The margin of purchase preference shall be 20% Page 6 of 12

ANNEXURE—1 List of items of goods and services with sufficient local capacity and competition: A. Small Hydro Power

1. Turbine
2. Generator
3. Penstock pipelines
4. Control panel
5. Governors
6. Cables
7. Valves
8. Transformers
9. Switchgears B. Wind Power
10. Gear box,
11. Blades,
12. Rotor,
13. Generator,
14. Tower,
15. Hub,
16. Parts of controller,
17. Bearings,
18. Yaw mechanism components,
19. Nacelle C. Off Grid! Decentralised Solar Power
20. Solar streetlights
21. Solar home lighting systems
22. Solar power packs
23. Micro grid
24. Solar water pumps
25. Inverters
26. Batteries
27. Other solar PV balance of system components for Off Grid/Decentralized solar power projects. D. Grid connected Solar Power Projects
28. Solar modules
29. Solar inverters Page 7 of 12 ANNEXURE-1 List of items of goods and services with sufficient local capacity and competition: A. B. C. Small Hydro Power

Turbine 2. Generator 3. Penstock pipelines 4. Control panel 5. Governors 6 Cables 7. Valves 8. Transformers 9. Switchgears Wind Power 1. Gear box, 2. Blades, 3. Rotor, 4. Generator, 5. Tower, 6. Hub, 7 Parts of controller, 8. Bearings, 9. Yaw mechanism components, 10. Nacelle Off Grid/ Decentralised Solar Power 1. Solar street lights 2. Solar home lighting systems 3. Solar power packs 4. Micro grid 5.

r, 8. Bearings, 9. Yaw mechanism components, 10. Nacelle Off Grid/ Decentralised Solar Power 1. Solar street lights 2. Solar home lighting systems 3. Solar power packs 4. Micro grid 5. Solar water pumps 6. Inverters 7. Batteries 8 Other solar PV balance of system components for Off Grid/Decentralized solar power projects. D. Grid connected Solar Power Projects 1. Solar modules 2. Solar inverters Page 7 of 12

E. Biomass Gasifier I Biomass gasifier reactor 2. Feed hopper 3. Ash removal system 4. Ash pump 5. Cyclone 6. Hot gas filter 7. Gas blower 8. Gas piping 9. Control panel 10. Platforms and ladders 11. Water seals 12. Gas burner for start up 13. Automatic gas burner F. Biomass Cogeneration

1. Boiler and its auxiliaries including ESP
2. Turbines! generator & its auxiliaries
3. Electrical evacuation and distribution system
4. Bagasse/biomass fuel storage and handling equipment
5. Ash handling systems
6. Cooling tower or air cooled condensers and its auxiliaries
7. Water treatment plant
8. Control system
9. Interface piping
10. EOT crane
11. ETP G. Municipal Solid Waste (MSW) Projects
12. Boiler
13. Flue gas cleaning system
14. Grab crane system
15. Waste processing system
16. Leachate treatment plant
17. Chimney
18. Water/air condenser
19. Turbine-generator,
20. Water treatment plant
21. Ash treatment plant
22. Control and instrumentation system Page 8 of 12 E. F. G. Biomass Gasifier

Biomass gasifier reactor 2. Feed hopper 3. Ash removal system 4. Ash pump 5. Cyclone 6. Hot gas filter 7.

ontrol and instrumentation system Page 8 of 12 E. F. G. Biomass Gasifier 1. Biomass gasifier reactor 2. Feed hopper 3. Ash removal system 4. Ash pump 5. Cyclone 6. Hot gas filter 7. Gas blower 8. Gas piping 9. Control panel 10. Platforms and ladders 11. Water seals 12. Gas burner for start up 13. Automatic gas burner Biomass Cogeneration 1. Boiler and its auxiliaries including ESP 2. Turbines/ generator & its auxiliaries 3. Electrical evacuation and distribution system 4. Bagasse/biomass fuel storage and handling equipment 5. Ash handling systems 6. Cooling tower or air cooled condensers and its auxiliaries 7 Water treatment plant 8. Control system 9. Interface piping 10. EQT crane 11. ETP Municipal Solid Waste (MSW) Projects 1. Boiler 2. Flue gas cleaning system 3. Grab crane system 4. Waste processing system 5. Leachate treatment plant 6. Chimney 7. Water/air condenser 8. Turbine-generator, 9. Water treatment plant 10. Ash treatment plant 11. Control and instrumentation system Page 8 of 12

Leachate treatment plant 6. Chimney 7. Water/air condenser 8. Turbine-generator, 9. Water treatment plant 10. Ash treatment plant 11. Control and instrumentation system Page 8 of 12

H. Waste to Energy (biogasi bio-CNG)

1. Feed mixer
2. Tank
3. Mixing agitator
4. Feeding pump
5. Digester tank
6. Stirring agitator
7. Double membrane balloon
8. Liquid & gas piping systems
9. Biogas purification system
10. B-CNG booster compressor
11. B-CNG filling header
12. Cylinder casket
13. CNG dispenser
14. Power generator Page 9 of 12 H. Waste to Energy (biogas/ bio-CNG) 1 Feed mixer

Tank 3. Mixing agitator 4. Feeding pump 5. Digester tank 6. Stirring agitator 7. Double membrane balloon 8. Liquid & gas piping systems 9 Biogas purification system 10. B-CNG booster compressor 11. B-CNG filling header 12. Cylinder casket 13. CNG dispenser 14. Power generator Page 9 of 12

ANNEXURE-Il The items manufactured under license from foreign manufacturers holding intellectual property rights and where there is a transfer of technology. Presently there is no entry for this Annexure. Page 10 of 12 ANNEXURE-11 The items manufactured under license from foreign manufacturers holding intellectual property rights and where there is a transfer of technology. • Presently there is no entry for this Annexure. Page 10 of 12

factured under license from foreign manufacturers holding intellectual property rights and where there is a transfer of technology. • Presently there is no entry for this Annexure. Page 10 of 12

ANNEXURE-Ill
General guidelines to be adopted selectively in an appropriate manner by the procuring entities in their tender documents.

1. The bidder shall have to be an entity registered in India in accordance with law.
2. The bids shall be in the language as prescribed by the tenderer/procurer.
3. The bids shall be in Indian National Rupees (INR) only in respect of local content only.
4. Indian subsidiaries of foreign bidders shall meet the qualifying criteria in terms of capability, competency, financial position, past performance etc.
5. The bidder shall follow Indian laws, regulations and standards. To be eligible for participation in the bid, foreign bidders shall compulsorily set up their manufacturing units on a long term basis in India as may be specified by the tenderer/ procurer.
6. Similar or better technology than the technology offered in respect of material, equipment and process involved shall be transferred to India. Along with the transfer of technology, adequate training in the respective field shall also be provided.
7. Country of origin of the equipment/material shall be provided in the bid.

erred to India. Along with the transfer of technology, adequate training in the respective field shall also be provided. 8. Country of origin of the equipment/material shall be provided in the bid. For supply of equipment / material from the country of origin other than India, the bidder shall submit performance certificate in support of satisfactory operation in India or a country other than the country of origin having climatic and operational conditions including ambient temperature similar to that of India for more than years (to be specified by the procurer). 10. The technologies/ products offered shall be environmentally friendly, consuming less energy, and safe, energy efficient, durable and long lasting under the prescribed operational conditions. 11. The supplier shall ensure supply of spares, materials and technological support for the entire life of the project. 12. The manufacturers! supplier shall list out the products and components producing Toxic E-waste and other waste as may be specified. It shall have an Extended Producers Responsibility (EPR) so that after the completion of the lifecycle, the materials are safely recycled / disposed of by the Manufacturer! supplier and for this, the Manufacturer/supplier along with procurer has to establish recycling ! disposal unit or as may be specified. 13.

s are safely recycled / disposed of by the Manufacturer! supplier and for this, the Manufacturer/supplier along with procurer has to establish recycling ! disposal unit or as may be specified. 13. Domestic Content requirement (based on the cost of the product) shall be in accordance with the conditions laid down in respective Order(s) of the sectors on Page 11 of 12 ANNEXURE-III General guidelines to be adopted selectively in an appropriate manner by the procuring entities in their tender documents. 1. The bidder shall have to be an entity registered in India in accordance with law. 2. The bids shall be in the language as prescribed by the tenderer/procurer. 3. The bids shall be in Indian National Rupees (INR) only in respect of local content only. 4. Indian subsidiaries of foreign bidders shall meet the qualifying criteria in terms of capability, competency, financial position, past performance etc. 5. The bidder shall follow Indian laws, regulations and standards. 6. To be eligible for participation in the bid, foreign bidders shall compulsorily set up their manufacturing units on a long term basis in India as may be specified by the tenderer/ procurer. 7. Similar or better technology than the technology offered in respect of material, equipment and process involved shall be transferred to India. Along with the transfer of technology, adequate training in the respective field shall also be provided. 8. Country of origin of the equipment/material shall be provided in the bid. 9.

to India. Along with the transfer of technology, adequate training in the respective field shall also be provided. 8. Country of origin of the equipment/material shall be provided in the bid. 9. For supply of equipment / material from the country of origin other than India, the bidder shall submit performance certificate in support of satisfactory operation in India or a country other than the country of origin having climatic and operational conditions including ambient temperature similar to that of India for more than --- years (to be specified by the procurer). 10. The technologies/ products offered shall be environmentally friendly, consuming less energy, and safe, energy efficient, durable and long lasting under the prescribed operational conditions. 11. The supplier shall ensure supply of spares, materials and technological support for the entire life of the project. 12. The manufacturers/ supplier shall list out the products and components producing Toxic E-waste and other waste as may be specified. It shall have an Extended Producers Responsibility (EPR) so that after the completion of the lifecycle, the materials are safely recycled I disposed of by the Manufacturer/ supplier and for this, the Manufacturer/supplier along with procurer has to establish recycling / disposal unit or as may be specified. 13. Domestic Content requirement (based on the cost of the product) shall be in accordance with the conditions laid down in respective Order(s) of the sectors on Page 11 of 12

s may be specified. 13. Domestic Content requirement (based on the cost of the product) shall be in accordance with the conditions laid down in respective Order(s) of the sectors on Page 11 of 12

Public Procurement (Preference to Make in India) to provide for purchase preference (linked with local content). 14. The equipment! material sourced from foreign companies may be tested in accredited labs in India before acceptance wherever such facilities are available. 15. The Tender fee and the Bank Guarantee (BG) shall be in Indian Rupees only. 16. The bidder shall have to furnish a certificate regarding cyber security/safety of the equipment/process to be supplied/services to be rendered as safe to connect. 17. Applicable safety requirements shall be met. Regular safety audit shall be carried out by the manufacturer! supplier. 18. Statutory laws/regulations including the labour and environmental laws shall be strictly complied with during supply, storage, erection, commissioning and operation process. A regular compliance report shall be submitted to the procurer/appropriate Authorities. 19. Formation of new joint venture in India shall be permitted only with the Indian companies. 20. Tendering by the agent shall not be accepted. 21. The original test report in the language prescribed by the procurer shall generally be accepted. Preferably the translated test report shall not be accepted. However, the notarized translation of test reports shall be accepted. 22.

guage prescribed by the procurer shall generally be accepted. Preferably the translated test report shall not be accepted. However, the notarized translation of test reports shall be accepted. 22. Certification/compliance as per the Indian Standards! International Standards! Indian Regulations! specified Standards shall be mandatory, where ever applicable. 23. Quality assurance of the product shall be carried out by the procurer or an independent third party agency appointed by the procurer. Manufacturing Quality Plan as approved by the procurer shall be followed by the manufacturer/supplier. 24. Wherever required, the foreign supplier shall establish fully functional service centers in India and shall keep spares/material locally for future needs of utilities. 25. Arbitration proceedings shall be instituted in India only and all disputes shall be settled as per applicable Indian Laws. Page 12 of 12 Public Procurement (Preference to Make in India) to provide for purchase preference (linked with local content). 14. The equipment/ material sourced from foreign companies may be tested in accredited labs in India before acceptance wherever such facilities are available. 15. The Tender fee and the Bank Guarantee (BG) shall be in Indian Rupees only. 16. The bidder shall have to furnish a certificate regarding cyber security/safety of the equipment/process to be supplied/services to be rendered as safe to connect 17. Applicable safety requirements shall be met. Regular safety audit shall be carried out by the manufacturer/ supplier. 18.

ment/process to be supplied/services to be rendered as safe to connect 17. Applicable safety requirements shall be met. Regular safety audit shall be carried out by the manufacturer/ supplier. 18. Statutory laws/regulations including the labour and environmental laws shall be strictly complied with during supply, storage, erection, commissioning and operation process A regular compliance report shall be submitted to the procurer/appropriate Authorities. 19. Formation of new joint venture in India shall be permitted only with the Indian companies. 20. Tendering by the agent shall not be accepted. 21. The original test report in the language prescribed by the procurer shall generally be accepted. Preferably the translated test report shall not be accepted. However, the notarized translation of test reports shall be accepted. 22. Certification/compliance as per the Indian Standards/ International Standards/ Indian Regulations/ specified Standards shall be mandatory, where ever applicable 23. Quality assurance of the product shall be carried out by the procurer or an independent third party agency appointed by the procurer. Manufacturing Quality Plan as approved by the procurer shall be followed by the manufacturer/supplier. 24. Wherever required, the foreign supplier shall establish fully functional service centers in India and shall keep spares/material locally for future needs of utilities. 25. Arbitration proceedings shall be instituted in India only and all disputes shall be settled as per applicable Indian Laws. Page 12 of 12