The Indian government has revised its “Domestically Manufactured Iron and Steel Products Policy” giving priority to locally produced iron and steel products in government contracts and supporting domestic steel mills, according to a government notification on Thursday, April 3.
The revised policy aims to curb rising steel imports by enforcing stricter procurement rules that limit foreign competition, the notification said.
All government ministries and government-owned companies including national transporter Indian Railways (IR) would need to prioritise locally-made steel through their tender-based procurement for all projects implemented by them and all such iron and steel products shall meet the “Melt & Pour” conditions within India, the notification stated.
Global tenders have been barred in the cases of steel supply contracts worth above INR 2 billion ($23 million) in a bid to keep foreign competition away from government contracts.
A reciprocal clause for foreign countries has also been introduced. As part of the clause, suppliers from countries that restrict Indian firms from their government tenders will not be allowed to participate in Indian government tenders, as per the revised policy, the notification said.