Discussion Points Tech Clinic Webinar Series

30th June 2020 3:00 to 4:00 PM

Understanding preference for Make in India procurement norms for Smart cities ICT
projects

The ‘Make in India’ initiative was launched as part of India’s boost to domestic design and
manufacturing capabilities. In recent times, with the onset of Covid19,’make in India’ initiatives
are gaining prominence to make the country self-reliant. The policy has been designed to
improve investments in domestic firms and industries, foster innovation, improve skills of
workers and enhance the repository of Intellectual Property (IP) in the country.
No. of attendees: 104
Speakers
1. Mr. Rahul Kapoor – Director, Smart Cities Mission
2. Dr. Garima Mittal- CEO, Faridabad Smart City Limited
3. Shri Gyanendra Singh- CEO, Saharanpur Smart City Limited
4. Shri Prashant Dhanda- CEO, Guwahati Smart City Limited
Session Moderator:
Mr. Rahul Singh- TASC Team, Smart Cities Mission

Name of Speaker Key Points

Mr. Rahul Kapoor ● Mr. Rahul Kapoor opened the session with a small brief on the
Make in India initiative started by government in 2014
● Aligned Make in India initiative with the Atmanirbhar philosophy
of our Honorable Prime Minister, to promote local manufacturing
in India.
● Shed some light on the deterrents impeding the speed of Make
in India initiative from the perspective of the market forces and
the local manufacturers.
● Mentioned that information asymmetry is the major concern for
smart cities and how work is being done to eradicate it.
● Highlighted that MoHUA does procurement of items mentioned
in the list prepared by it indigenously and could not do similar for
Smart cities since it is not the nodal authority for procurement
there.
● Brought to notice that tenders worth less than 200 crores cannot
be global tenders in smart cities and Make in India preference
clause will have to be incorporated in the tender.
Audience Q&A

Paraphrased Questions Directed to Paraphrased Response

from Audience

How the Make in India Mr. Padam Vijay • Idea of Make in India is to provide
policy envisaged for the benefit to manufacturers in India and
implementation in various promote creativity and economy of
government scale.
procurements? • The manufacturing capability should
be able to fulfill large scale
requirement of India infrastructure
projects

What are the purchase Mr. Rahul Singh • Local content can be increased
preferences for those through partnerships, cooperation with
Indian manufacturers local companies, establishing
providing hardware items production units or Joint Ventures (JV)
and software with Indian suppliers, increasing the
licenses/services to the participation of local employees in
end customers through services and training.
Master System Integrators • When it comes to purchase
( and not selling the preferences, all has to go through
directly)? Master system integrated through joint
venture modes or subcontracting
mode

What are the options with Mr. Rahul • If there is updated Grievance
the Indian manufacturers Kapoor Redressal Mechanism which
to seek help for the unjust escalates at appropriate level, then
RFP specifications which most of these queries can be handled
are biased towards foreign timely and government functionaries
OEMs when better won’t have to bear the brunt.
technology is available • Shed some light on the first stage of
through Indian OEMs? tender process i.e. Pre-bid meeting
Does the government and suggested that the OEMs and
have any redressal master system integrators should be
mechanism for such invited there for better grievance
concerns? redressal.
• Mentioned Escalation mechanism for
tackling grievances not solved in first
stage.
• Mentioned that the grievances are
tried to be tackled at city levels and for
centre level interference it has to be
registered on online portal

Most of the Indian Mr. Rahul Singh ● Assembling in India will definitely
manufacturer who are qualify as per the local content
making products like guidelines of DPIIT.
camera, NVR, display
solutions etc. in India, are
importing components
from other countries and
assembling in India. Does
it qualify under “Make in
India” or there is some
clause which is applicable
on product component
level too? Please clarify.

As per our understanding Dr. Garima • Being a subsidiary doesn’t qualify a

foreign companies Mittal company for “Make in India” but the
registered in India through local content.
their subsidiary company • Amount of local content. has been
also qualify for “Make in increased to 50% as per the
India” Please clarify and guidelines.
confirm. • Local content percentage should be
right as per the guidelines.

Any Foreign entity Mr. Rahul Singh • The local content quantity should be
registered in India and according to the guidelines.
fulfill the conditions of local
content conditions of Make
in India?

What is the definition of Mr. Rahul • Many Chinese smartphone companies

Make in India product? Kapoor in India are assembling the devices
Many products like and under the new guidelines, they
Servers, Storage and have been classified as Class 1
high-end computing and Supplier (local content more than
networking hardware, 50%) and class 2 supplier (local
which are not content between 20-50%).
manufactured in India but • There are different specifications for
sold in India by Indian different sectors issued by respective
entities in INR. We hope ministries.
this also qualify under
make in India. Please
clarify.

Does Make in India give Mr. Rahul • There are various relaxations given to
special treatment to Start Kapoor start Ups such as purchase
Ups in India? preference as laid down through
guidelines by DPIIT.
• States have come up with their own
policies to promote Start Ups.

As a MSI it is our Mr. Padam Vijay • When a MSI is bidding for a project,
responsibility to not only they have to take in consideration the
deliver the products but risks and its implications because
manage the project for 5-7 these are large projects and complex
years and due to in nature. Moreover, these projects
conformity of Make in run into many years.
India clause if we are • It is applicable to any supplier not
compelled to choose a based out of India also. Even
product which does not applicable to partners also.
perform as per project • Flexibility is given to the MSIs to
requirements or being sold choose partners during bidding.
by start up the company
stops its operations then
who will be held
responsible for its service
and support.

Are we discerning Chinese Mr. Rahul • No guidelines issued by the

investment and excluding Kapoor government with regard to the
them? procurements due to WTO affiliation
and others guidelines.

What has been the Dr. Garima • They have a clause of Quality 70%
position of Faridabad Mittal and cost 30%.
smart city in large ICCC • For ICCC contract, the consortium
contracts? should be registered under Company
Act and legal entity for 5 years.
• The consortium partner should do
business in India for at least 5 years.
• The sole bidder of the consortium
should have implemented traffic signal
projects with the supply and
installation of signal lights, traffic
controls and control centers involving
40 intersections in India for the last 5
years as on 2017 and various others
laid down under the guidelines.

Should foreign Mr. Gyanendra • Provide more opportunity and support

certifications in bids in Singh to local companies in Saharanpur
ICCC be encouraged? Smart city.
• Foreign certifications are required
when there is not equivalent
certification in India.

These guidelines are Mr. Rahul • When a government guideline comes,

issued in early June, what Kapoor it is with prospective effect unless
about the tenders which mentioned.
are under evaluation. Will • If a tender has been finalized then
they also have to they will be based on earlier
retrospectively comply? guidelines.

What if the software like Mr. Rahul • Under the guidelines by DPIIT,
OS, Database if product Kapoor components have been classified as
license if imported but its Divisible and Non-divisible with
implementation and O&M respect to implementation.
is locally managed. will the • Non-divisible contract like in case of
value of local content ICCC, they are dealt differently with
implementation and O&M respect to divisible contracts.
should be considered as • If technology is transferred from
make in India outside India and used in local
components then also it qualifies for
Make in India