New Delhi, Aug 5 (IANS): The Department for Promotion of Industry and Internal Trade (DPIIT) plans to appoint a consulting agency for scrutinising tenders of Central government procuring entities for compliance with public procurement norms.

The department, under the Commerce Ministry, has issued a notice inviting requests for proposal by interested consulting agencies.

"DPIIT intends to on-board an Agency, for a period of one year, for scrutinising tenders of Central Government procuring agencies for its compliance with PPP-MII Order," its notice said. Interested applicants can submit their responses on Central Public Procurement Portal -- http://eprocure.gov.in -- before 12 p.m. on September 8.

The Public Procurement (Preference to Make in India) Order, 2017 has been issued to promote domestic production of goods and services, and thus, spur employment and income. The policy aims at incentivising production linked through local content requirements, thereby encouraging domestic manufacturers' participation in public procurement activities over entities merely importing to trade or assemble items.

The development gains significance as the government has lately emphasised on local suppliers in public procurement amid the call for an 'Aatmanirbhar Bharat' and more so in the wake of the border tussle with China. The government has also amended the general financial rules (GFR) to keep foreign suppliers out of government tenders valued less than Rs 200 crore.

Among other requirements, the order says that in procurement of all goods, services or works, of which the estimated value is less than Rs 50 lakh, only local suppliers shall be eligible to bid, except in certain cases. However, in procurement of all goods, services or works, in respect of which the nodal ministry or department has communicated that there is sufficient local capacity and local competition, only local suppliers shall be eligible to bid irrespective of purchase value.

In case, the estimated value of procurement exceeds Rs 50 lakh and the lowest bid (L1) is not by a local supplier and if goods are divisible, local suppliers get purchase preference for half of the contract bid at the L1 price.

However, if the goods are not divisible or the services being procured are being valued on price alone, the entire contract shall be awarded to such local supplier subject to his matching the L1 price, as per the public procurement order.

The DPIIT notice said that all the Central Government departments and agencies have been mandated to align their procurement procedures with the PPP-MII order.