Standing committee issues clarifications under DMI&SP policy
Published: Jun 29, 2017
By TIOLCORP News Service
NEW DELHI, JUNE 29, 2017: A Standing Committee headed by Secretary (Steel) was constituted on June 14, 2017 under clause 4 of the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, to issue clarification sought by stakeholders. Recently, Ministry of Railways, ONGC Limited, Indian Pipe Manufacturers Association (IPMA) and Seamless Tube Manufacturers Association of India (STMAI) have sought certain clarifications on the DMI&SP Policy. Accordingly, the Standing Committee held its first meeting on June 21, 2017 and clarified the issues raised by these 4 organizations.
The government had approved the said policy for giving preference to domestically manufactured iron & steel products in government procurement. The policy was notified on May 8th, 2017, and became effective from the date of its publication in the Official Gazette of India. The policy mandates giving preference to Domestically Manufactured Iron & Steel Products (DMI&SP), during procurement by the Government, in which a minimum value addition of 15% had taken place domestically. This policy cover under its ambit each of the Ministries, Government Department and all agencies/entities under their administrative control. This policy is applicable to supply of iron & steel products having aggregated estimate value of INR 50 Crores or more. The policy provides waivers to all such procurements, where specific grades of steel are not manufactured in the country, or the quantities as per the demand of the project could not be met through domestic sources.