Bhavesh Kumar

Senior Correspondent, IFSEC Global

December 11, 2015

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Indian Government to Favour Domestic Companies in Security Procurement as Part of Modi’s ‘Make in India’ Policy

Vintron cctvGovernment departments excluding defence forces are to give preference to Indian companies when procuring CCTV and sensor-based security systems, it has been revealed.

The rationale behind an amendment to the Preferential Market Access Policy was to align procurement policy with the ‘Make in India’ vision of Prime Minister Narendra Modi.

The following updates to the newly announced Preferential Market Access (PMA) policy are worth noting:

  • A policy for giving preference to domestically manufactured electronic products (DMEP) has been laid down by Indian government for procurement for its own use and not for commercial resale or for use in manufacturing goods for commercial sale.
  • The said policy shall be applicable to all Ministries/Departments (except Ministry of Defence).
  • The percentage of procurement to be made under DMEP would be separately specified by each Ministry or Department and shall not be less than 30% of the total value of electronic products to be procured.
  • The Domestic Value Addition (VA) requirement which the electronic product should affirm to qualify as DMEP shall be also specified by each Ministry or Department.
  • The Department of Telecommunication has come up with their list of 23 domestic products that are part of the PMA policy with their minimum preference and minimum domestic value addition requirement.
  • PMA on CCTV cameras and sensor-based alarm systems is 100% with value addition of 35% in the first year and incremental increases of 5% in subsequent years.
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