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Domestically Manufactured Laptops, PCs and Tablet PCs to be given Preference in Government Procurement

Notifications for Providing Preference to Domestically
Manufactured Laptop PCs and Tablet PCs in Government Procurement

The Government has notified the policy for providing preference to domestically manufactured electronic products in procurement due to security considerations and in Government procurement vide Department of Electronics and Information Technology (DeitY) Notification No.8(78)/2010-IPHW dated 10.2.2012. This is one of the strategies contained in the National Policy on Electronics (NPE 2012) approved by the Government for promoting the domestic Electronics System Design and Manufacturing (ESDM) Industry in the country. The Policy is inter-alia applicable for Government procurement, whereby the policy will be applicable to all Ministries/Departments (except Defence) and their agencies for electronic products purchased for Governmental purposes and not with a view to commercial resale or with a view to use in the production of goods for commercial sale.

In furtherance of the Policy notified vide reference cited above, the DeitY had issued Notification No.8(41)/2012-IPHW dated 17.12.2012 for providing preference to domestically manufactured Desktop PCs and Dot Matrix Printers in Government procurement. DeitY has issued two more Notifications No.8(41)/2012-IPHW dated 22.1.2013 for providing preference to domestically manufactured Laptop PCs and Tablet PCs respectively in Government procurement.

The Notifications prescribe 50% preference (in value terms) is to domestically manufactured Laptop PCs and Tablet PCs in Government procurement, subject to the condition that the Laptop PCs and Tablet PCs meet domestic value addition in terms of Bill of Material (BOM) of 25% and 30% respectively in Year 1 to qualify as domestically manufactured. The notifications come into effect immediately. The Year 1 for the purpose of this notification would be upto 31.3.2014. The domestic value addition for Year 2 onwards shall automatically increase by 5% in terms of Policy referred to as above.

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eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

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