The Centre has directed that domestically-manufactured vehicles with minimum 65 per cent local content will be given preference for government use. The new norms were notified by the Heavy Industries Ministry on Monday.

The new mandate aims to “encourage Make in India” and to promote manufacturing and production of goods and services locally.

“Preference shall be provided by all government procuring entities to domestically manufactured automobile and automotive components,” it said.

The norm applies to automobiles based on internal combustion (IC) engines including two and three wheelers, passenger vehicles and commercial vehicles. The components or spares required for the manufacture and maintenance of these vehicles are also included under the recent directive.

According to the official notification, while for vehicles minimum 65 per required to qualify as domestically manufactured is the mandate, but for auto components the percentage has been set at 60 per cent.

“The local supplier at the time of tender, bidding or solicitation shall provide self-certification that the item offered meets the minimum local content and shall give details of the location(s) at which the local value addition is made,” said the notification.

In cases where the procurement is for a value over Rs 100 million, the local supplier shall provide a certificate from the statutory auditor or cost auditor of the company (in the case of companies) or from a practising cost accountant or practising chartered accountant (in respect of suppliers other than companies) giving the percentage of local content, it added.

The new norms are already effective and would be reviewed after March 31, 2019.

The validity remains till a revised notification is issued.  

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