SAIL Manufactured iron and steel products in government procurement

New Delhi: (SAIL) The Government had approved a Policy for providing preference to domestically manufactured iron & steel products in government procurement (DMI&SP Policy) and notified the same on 8th May, 2017. The policy mandates to provide preference to Domestically Manufactured Iron & Steel Products (DMI&SP), in Government Procurement for its own use and not with a view to commercial sale.

 

A clarification has been sought regarding the calculation of value addition for imported portion in the case if steel is produced using the mix of imported and domestic input steel. It may be stated  that this has already been clarified by the Standing Committee in its meeting held 21st June 2017 which reads as under:-

 

It was clarified that all imported steel must undergo a minimum prescribed value addition of 15% in terms of Para 7.2 b read with Appendix- A of the Policy in order to be eligible for bidding under the Policy. Further para 7.1 of the Policy provide manner of calculation of value addition. Even in mix comprising of imported and domestic steel, imported portion should separately meet the minimum prescribed value addition criteria of 15% as prescribed in Appendix- A.