As per the notification issued by the Ministry of New and Renewable Energy (MNRE), preference will be given to domestically manufactured renewable energy products in all the procurement by government entities.
By enforcing the Public Procurement (Preference to Make in India) Order 2017, the government aims to encourage production of goods and services in India with a view to enhancing income and employment.
As per the notification, off-grid and decentralized solar power projects must use a minimum of 70% domestically manufactured products, such as solar street lights, solar home lighting systems, solar power packs and/or micro grids, solar water pumps, inverters, batteries and any other solar PV balance-of-system components.
For grid-connected solar power projects, the minimum percentage of domestically manufactured content required is 100% for solar modules and 40% for other components, such as inverters.
Products or items being procured for R&D or demonstration purposes are exempt from the order. Furthermore, the order mandates that electricity generated through renewable energy products procured under Public Procurement (Preference to Make in India) Order must be utilized for captive or non-commercial purposes only.
Verification of local content
Local suppliers at the time of tenders will be required to provide self-certiﬁcation that the items being offered meet the minimum local content requirements, and details of the locations at which the local value addition is made.
In the case of procurement of products worth more than Rs 100 million, the local supplier will need to provide a certificate from the statutory auditor or cost auditor of the company, or from a practicing cost accountant or practising chartered accountant, stating the percentage of local content.
In case of false declarations, the bidder or its successors may be debarred for up to two years along with such other actions as may be permissible under law.
The administrative Ministry/Department (MNRE, Ministry of Power, ONGC, NTPC, etc.) will constitute Technical Committees with internal and external experts for independent verification of self-declarations and auditor’s/accountants’ certificates on random basis and in case of complaints.